South Korea Delays Crypto Tax Implementation Until 2027 Amid Investor Backlash
South Korea’s Democratic Party of Korea (DPK) has decided to delay the implementation of the country’s crypto tax for two more years, pushing the start date to 2027.
This decision follows significant opposition from investors and an ongoing debate with the ruling People Power Party (PPP).
The DPK announced the postponement after considerable discussions, highlighting the need for more institutional preparations for digital asset taxation. Park Chan-dae, a DPK representative, emphasized the delay as a result of careful deliberation. The original plan had been to start taxing profits from crypto assets in 2025, but the DPK’s shift aligns with growing concerns from investors and political tensions over the tax proposal.
South Korea’s government first proposed taxing crypto profits back in 2021, with plans for a 20% tax on earnings exceeding $1,800 annually. However, the plan has faced multiple delays due to pushback from the crypto community and business groups. Initially set for 2023, the tax start date was pushed back twice, and now, with the DPK’s recent decision, the full implementation is postponed until 2027.
READ MORE: Could 2025 Be the Year Dogecoin Gets Its Own ETF?
The government had planned to apply a 22% tax on crypto gains above 2.5 million won starting in 2024. However, the crypto community’s growing frustration with the tax system’s disparity, as it taxed smaller gains than stock profits, has led to increasing resistance. The postponement reflects the need for further political consensus and adjustments to the tax policy to ensure a smoother transition.
South Korea continues to be a vital player in the global crypto market, with significant trading volumes. In the first half of 2024, the country saw a 67% increase in daily crypto trading volume, reaching six trillion won. This growth is accompanied by a rise in domestic crypto investors, further signaling the importance of a balanced regulatory approach.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
