South Korean Lawmaker Demands Five-Year Crypto Loss Carryforward
Rep. Min Byung-deok urges delaying crypto taxes until infrastructure is ready to prevent excessive levies on investors.
Key points
- Rep. Min Byung-deok proposes a five-year loss carryforward for crypto assets in South Korea.
- Current rules tax gains without allowing loss offsets, creating unfair financial outcomes.
- Taxation should wait until after the 2027 CARF data exchange and Digital Asset Act passage.
South Korean lawmaker Min Byung-deok demands a five-year loss carryforward for crypto. He argues current rules force investors to pay taxes despite net losses.
The proposal seeks to align South Korea with U.S. and U.K. standards. It aims to prevent disproportionate tax burdens on domestic exchange users.
Current System Creates Unfair Tax Outcomes
Min cited an investor losing 10 million won in one year. The next year, a 10 million won gain triggers 1.65 million won in tax.
This results in a tax payment despite zero cumulative profit. Min criticized the framework for lacking provisions to offset losses.
Infrastructure Must Precede Tax Collection
The Digital Asset Basic Act must pass before taxation begins. This ensures legal clarity for staking and lending activities.
Min warned that early taxation shifts trading overseas. This reduces revenue for local businesses and national tax receipts.
Data Exchange Timing Is Critical
The first Crypto-Asset Reporting Framework data exchange occurs in 2027. Taxation starting before this creates data gaps.
According to bloomingbit.io, Min wants the government to disclose projected revenue. He also demands transparency on administrative costs and investor burdens.
