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Cryptocurrency-related image. / Wikimedia Commons (edwinchuen)

More than seven out of ten crypto investors view the implementation of virtual asset taxation scheduled for 2027 as premature. Concerns are also emerging that enforcing the tax without adequately preparing the necessary institutional frameworks and systems could contract investment and reduce the use of domestic exchanges.

According to Tiger Research on the 1st, a survey of 2,423 domestic crypto investors revealed that 75.2% of respondents considered the 2027 rollout of virtual asset taxation to be "early." Those opposing the 2027 implementation or calling for an additional grace period accounted for 82.9%. Among the 1,823 respondents who answered that the 2027 timeline was early, 93.4% stated that taxation should be deferred further if the necessary institutions and systems are not established by their preferred timeline.

The survey found that some respondents opposing the tax could reconsider their stance provided regulatory adjustments are made. Of those opposed to taxation, 51.5% replied that they could accept the levy if the current regime's shortcomings are sufficiently addressed.

Concerns were also raised regarding the government's state of readiness. 66.4% of respondents evaluated the government's tax administration and IT infrastructure as insufficiently prepared.

Shifts in investment behavior following the rollout were also indicated. 69.7% of respondents said they were likely to scale back or halt virtual asset investments once the tax takes effect. Those stating they would reduce their use of domestic exchanges stood at 73.1%, while 68.1% indicated they would increase their use of foreign exchanges. Furthermore, 64.2% stated they would expand transactions via personal non-custodial wallets.

Controversy surrounding crypto taxation has persisted through multiple deferrals. Originally slated for implementation in 2022, the tax has been postponed three times citing tax infrastructure and regulatory overhauls, and is currently slated to take effect in January 2027.

Petitions submitted to the National Assembly's public consent platform demanding another deferral have recently resurfaced. Last month, a petition requesting a two-year postponement of the tax slated for 2027 garnered more than 50,000 endorsements.

A crypto industry official remarked, "Rather than simply debating the implementation date when deciding on an additional deferral, it is necessary to examine whether the institutions and systems required for taxation are genuinely in place."

                                                                                                                Kim Min-ju