South Korea plans to delay its 20% crypto gains tax by two more years, marking the third postponement.
Local news agencies reported on Sunday that South Korea is anticipated to postpone its crypto gains tax for an additional two years.
ChosunBiz reports that the Democratic Party of Korea (DPK), the country’s left-wing party that controls the legislature, has consented to the two-year delay proposed by the government and the governing People Power Party.
This would be the third occasion in which South Korea has postponed the 20% tax (22% with local tax) on cryptocurrency gains exceeding 2.5 million Korean won ($1,784), if approved. The National Assembly’s plenary session is scheduled to vote on the proposed deferral on Monday.
The Democratic Party had previously advocated for the tax plan to be implemented on Jan. 1, 2025, with a higher tax-deductible threshold of 50 million Korean won ($35,714), as opposed to the current 2.5 million won threshold.
At a press briefing on Sunday, Park Chan-dae, the floor leader of DPK, reportedly stated that the party had consented to the delay because it believed that the tax plan necessitated additional regulatory refinement.
One of the most active retail cryptocurrency markets in the world is located in South Korea. Upbit, the country’s main cryptocurrency exchange that is regulated to serve only local customers, is ranked fifth on CoinMarketCap’s list of top spot exchanges. In the past 24 hours, it exceeded $11 billion in trade volume.
