- South Korea has once again postponed the implementation of cryptocurrency taxes, pushing the deadline to 2027.
- The decision to delay the tax has sparked debate between the ruling and opposition parties, with concerns raised about the impact on the crypto industry.
- The postponement provides much-needed relief to South Korean crypto investors, who can now focus on navigating the market without immediate tax concerns.
South Korean lawmakers have approved a bill to postpone the tax until 2027. Originally slated to be implemented in 2022, the 20% tax on cryptocurrency gains has been subject to multiple delays due to strong opposition from the crypto community. As per reports, the latest postponement, until 2025, was a result of extensive negotiations between the ruling and opposition parties.
The decision provides much-needed relief to South Korean crypto investors, who have been grappling with uncertainty surrounding the tax regulations. With the 2027 deadline, investors now have more time to prepare for the upcoming tax regime.
South Korea’s parliament held discussions on crypto asset taxation with key issues like tax scope and exemptions. In the meeting held on Nov 19, the committee decided to postpone the taxation citing the need to prioritize other agenda items. The controversial move sparked debate between the ruling party and the opposition.
On November 19, the National Assembly Strategy and Finance Committee held a tax subcommittee meeting on virtual asset taxation. However, the committee opted to delay addressing the taxation policy, a move opposed by the opposition. Oppositions have been mounting pressure on the government to finalize a crypto tax policy.
South Korea’s Crypto Tax: A Political Tug-of-War
Earlier, the nation’s main opposition party The Democratic Party of Korea (DPK) convened a meeting to abolish the capital gains tax on financial investments, with a decision expected during the National Assembly’s final regular session on December 10. The proposal is part of a larger effort to strengthen the country’s financial markets and stimulate economic growth.
Voicing strong support for DPK’s move is Governor Lee Bok-hyun of the Financial Supervisory Service (FSS) who highlighted its potential to attract global investors and bolster South Korea’s competitive edge in global finance.
South Korea’s political arena has heated up as lawmakers debate several issues related to crypto taxation, including the tax deferral timeline, asset valuation, reporting requirements, and basic tax exemption.
