South Korean Crypto Traders Push for Tax Delay Amid Rising Caution, Regulatory Uncertainty
South Korean crypto traders are urging the new government to postpone or waive the upcoming cryptocurrency tax, amid growing concerns over regulatory uncertainty. Nearly 49% of investors back deferring or exempting the tax, reflecting widespread apprehension about its impact on the market. The latest survey also reveals a notable shift in sentiment: optimism about near-term Bitcoin price gains has weakened, with only 41.7% expecting price increases—down from 51.9% the previous week—while those anticipating a decline have jumped to 33%, more than doubling. Beyond taxation, traders are demanding stronger investor protections (25.9%), looser rules for ICOs and crypto ETFs, support for Security Token Offerings (STOs), and the introduction of KRW-pegged stablecoins. Analysts warn that hasty implementation of crypto taxes could stifle market growth and decrease capital inflows. The government’s forthcoming policy decisions will be crucial, likely influencing both short-term price direction and South Korea’s broader position as a leading Asian crypto hub. Crypto traders should closely monitor regulatory updates, as these changes carry significant implications for market volatility and the structure of the trading landscape.
Bearish
The news signals increasing uncertainty among South Korean crypto traders as they call for a delay or exemption of planned crypto taxes, citing regulatory concerns. Market sentiment has notably shifted, with optimism over Bitcoin’s price waning and bearish expectations rising sharply. Such regulatory anxieties, particularly regarding imminent taxation, tend to suppress risk appetite, drive volatility, and prompt traders to adopt a more cautious stance. In the short term, these developments are likely to negatively affect Bitcoin prices and overall market activity. The situation may remain bearish until there is clarity or a favorable government response concerning tax policy. While long-term effects depend on the government’s actions, current sentiment and potential regulatory headwinds make the immediate outlook bearish for the market.