BackRuling party proposes gov't delay planned taxation of cryptocurrency

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Ruling party proposes gov't delay planned taxation of cryptocurrency

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South Korea's ruling Democratic Party has formally proposed postponing cryptocurrency taxation, scheduled to take effect January 1, which would mark the fourth delay since the scheme was introduced in 2020.
The party wants to first enact the Digital Asset Basic Act to establish a framework before implementing taxes on crypto gains exceeding 2.5 million won.

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Why It Matters

South Korea first introduced a taxation scheme on cryptocurrencies in 2020, but its implementation has been repeatedly postponed, with taxation now set to take effect January 1. If accepted, this would mark the fourth delay.

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SEOUL, Nov. 4 (Yonhap) -- The ruling Democratic Party (DP) on Wednesday formally proposed that the government postpone the implementation of taxation on cryptocurrencies, set to take effect next year.

The party's supreme council decided to make such a proposal in a meeting, considering the need to give businesses and investors time to adjust to the new taxation scheme, according to DP leader Kim Min-seok.

"We agreed that it would be better to first enact the Digital Asset Basic Act to build an overall framework and allow time for companies and investors to adapt after a comprehensive review of taxation principles, domestic industry conditions and fairness among users," Rep. Kim said.

South Korea first introduced a taxation scheme on cryptocurrencies in 2020, but its implementation has been repeatedly postponed, with the taxation now set to take effect Jan. 1. If the latest proposal is accepted, it would mark the fourth delay.

Under the scheme, annual cryptocurrency gains exceeding 2.5 million won (US$1,880) will be subject to a 22 percent tax, including the local income tax.

What to Watch

AI outlook — possibilities, not facts

The government will consider the Democratic Party's proposal to postpone cryptocurrency taxation
Possible · Within weeks

Open Questions

When would the government respond to the proposal?
What specific timeline does the Digital Asset Basic Act enactment propose?
How would the fourth delay affect government revenue projections?

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Ruling party proposes gov't delay planned taxation of cryptocurrency

Quick Look

South Korea's ruling Democratic Party has formally proposed postponing cryptocurrency taxation, scheduled to take effect January 1, which would mark the fourth delay since the scheme was introduced in 2020.
The party wants to first enact the Digital Asset Basic Act to establish a framework before implementing taxes on crypto gains exceeding 2.5 million won.

AI-generated summary

Why It Matters

Font size

Under the scheme, annual cryptocurrency gains exceeding 2.5 million won (US$1,880) will be subject to a 22 percent tax, including the local income tax.

What to Watch

AI outlook — possibilities, not facts

The government will consider the Democratic Party's proposal to postpone cryptocurrency taxation
Possible · Within weeks

Open Questions

When would the government respond to the proposal?
What specific timeline does the Digital Asset Basic Act enactment propose?
How would the fourth delay affect government revenue projections?

Ruling party proposes gov't delay planned taxation of cryptocurrency

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What to Watch

Open Questions

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Ruling party proposes gov't delay planned taxation of cryptocurrency

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Open Questions

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