South Korea’s Democratic Party Proposes New Crypto Tax Bill Targeting Large Investors
South Korea's Democratic Party (KDP) is set to propose significant changes to crypto taxation during a session on November 26.
The new bill aims to increase the tax deduction threshold for cryptocurrency profits to 50 million won (about $36,000), primarily targeting large-scale industry players.
Originally, the party had suggested taxing crypto gains beginning at 2.5 million won (roughly $1,800). However, after backlash from investors, the party revised its stance. Under the new proposal, individuals would be able to claim up to 50% of the total transfer price as tax-free when the actual acquisition cost of digital assets cannot be verified.
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This shift has sparked mixed reactions. While the Democratic Party claims the changes will only affect larger investors, analysts argue that there could still be significant opposition to the adjustments. According to a party official, the new tax structure would primarily impact major crypto investors, as a 5% return on an investment of 1 billion won (around $750,000) would be required to exceed the 50 million won threshold.
If approved, the tax changes could take effect as early as January 2025, though if there is no consensus during the committee vote, discussions could be delayed until December 2. If the ruling and Democratic parties can’t agree on the details, the initial tax proposal, which included the lower 2.5 million won threshold, might be reinstated.
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.
