Crypto industry pushes back on South Korea tax plan set for next year

South Korea’s crypto industry is calling for a review of the planned January rollout of a tax on virtual asset income next year, arguing the market is not ready and a delay is needed, Digital Times reported. According to a policy paper on virtual asset income taxation prepared by the Digital Asset eXchange Alliance (DAXA) on Sept. 10, the industry’s biggest concern is how acquisition costs would be calculated. For virtual assets transferred to South Korean exchanges from overseas exchanges or personal wallets, there is no public system to verify the initial acquisition date and purchase price, the paper said. The industry also said a withholding tax system for non-residents would be difficult to implement in practice, adding that information obtained through exchanges’ know-your-customer procedures alone is not enough to accurately determine whether a user is a resident or non-resident under tax law.