South Korea

The South Korean government has proposed to postpone the introduction of the cryptocurrency income tax from 2027 to 2029. The rate will remain at 22% for income exceeding 2.5 million won. Authorities also plan to allow loss carryforwards for three years. Parliamentary approval is required for the changes to take effect.

A representative from Samsung Global Research hinted at the possibility of a stablecoin pegged to the Korean won in Samsung Wallet. This is not an announcement of a launch yet. In the U.S., the app already facilitates USDC transfers to over 60 countries. We explore the prospects of payments, new rules for tokenizing securities, and risks for banks.

South Korean crypto exchanges are required to store at least 80% of client assets in cold wallets. Following the Binance hack, the regulator recommended increasing this share, tightening withdrawal controls, and boosting reserves. The industry is discussing a threshold of 99%, but no official decision has been made yet.

The Financial Services Commission of South Korea (FSC) held an emergency meeting after the $6.3 billion Binance hack and urged exchanges to increase the share of assets in cold storage. By law, it must be at least 80%; Upbit has 99.17%, and Bithumb has 94.76%.

Despite South Korea's GDP growth of 1.0%, the KOSPI index has decreased by 8.5% over the past three months. Economic factors analysis.

The Bank of Korea has been surveying 18 banks and 13 brokerage firms since October 23 about the risks associated with cryptocurrencies. Scenarios include hacking of a major exchange, market crashes, and losses of other financial organizations. Responses are expected on Wednesday.

Samsung's expanded investments in the US and South Korea may strengthen competitive advantages in the AI and semiconductor markets.

The South Korean financial sector is experiencing a second wave of cyberattacks, raising concerns about the growing threats posed by artificial intelligence.

South Korean authorities are discussing an educational tax for crypto exchanges if they are recognized as financial companies under the Basic Digital Assets Act. According to Seoul Economic Daily, Dunamu (Upbit) could pay around 10.2 billion won annually, while Bithumb may pay about 3.2 billion won. No final decision has been made.

The possibility of a fourth delay in the introduction of the cryptocurrency tax in South Korea until 2029 is being discussed. Details on tax legislation.