South Korea ruling Democratic Party proposes delaying cryptocurrency tax again

The party's stated rationale is to allow businesses and investors time to adjust to the new taxation scheme. "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," Kim said.

South Korea first introduced a taxation scheme for cryptocurrencies in 2020, but its implementation has been repeatedly postponed, and the taxation is now set to take effect on January 1. If the latest proposal is accepted, it would mark the fourth delay. Under the scheme as currently set, annual cryptocurrency gains exceeding 2.5 million won (about US$1,880) would be subject to a 22 percent tax, including the local income tax.

The article does not state whether the government has responded to the proposal, and Kim's comments do not specify a timetable for a decision.