On the 1st, a revised law amending parts of the Income Tax Act, which includes provisions for the separate taxation of cryptocurrencies, came into effect. This marks the realization of demands that the industry has long advocated for in terms of tax policy.
Currently, discussions are underway regarding the transition of cryptocurrencies to the Financial Instruments and Exchange Act (FIEA). Therefore, it is important to note that the recent tax reforms for cryptocurrencies are contingent upon this transition, and immediate separate taxation will not be applied.
Specifically, the tax reforms enacted will apply from the effective date of the revised FIEA, which transitions the handling of cryptocurrencies to this framework. As of now, the revised FIEA is expected to come into effect on January 1, 2028, and it is highly likely that separate taxation for cryptocurrencies will be officially applied from that date.
In the event that the revised FIEA comes into effect within 2026, separate taxation would apply from January 1, 2027. However, considering the current schedule and the preparation required for existing cryptocurrency exchanges, the likelihood of separate taxation being applied from next year is extremely low.
