Min Byung-deok Calls for at Least Five Years of Crypto Loss Carryforwards Before Taxation

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Min Byung-deok, a lawmaker from South Korea’s Democratic Party, said virtual-asset investors should be allowed to carry losses forward for at least five years and deduct them from future gains before crypto taxes are imposed.

In a Facebook post on September 22, Min wrote that authorities should not tax gains while disregarding losses, criticizing the current tax framework for lacking a loss carryforward provision.

He gave the example of an investor who posts a 10 million won ($7,200) loss from virtual-asset investment in the first year and a 10 million won ($7,200) gain the following year. Over the two years, cumulative profit would be zero, but under the current system the investor would still owe 1.65 million won ($1,190) in taxes in the second year, he wrote.