In a surprising turn of events, South Korea’s ruling party, the People’s Power Party, has formally proposed a significant delay in the implementation of the country’s tax on cryptocurrency trading profits. Originally slated to take effect on January 1, 2025, this tax will now potentially be postponed until January 1, 2028, pending approval of the proposal.
The decision to delay comes amidst growing concerns over the current regulatory environment for digital assets. The People’s Power Party cited deteriorating sentiment towards cryptocurrencies and emphasized that hastily imposing taxes on virtual assets could be detrimental at this juncture.
Highlighting the perceived higher risks associated with cryptocurrencies compared to traditional stocks, the party argued that introducing income taxes on crypto gains could drive investors away from the market. They stressed the necessity for a robust regulatory framework that ensures fair and secure transactions in the crypto space.
This move by the ruling party is seen as a fulfillment of its pre-election promises made earlier this year. During the campaign leading up to the April general elections, the People’s Power Party pledged to delay the implementation of the crypto gains tax by two years. They argued that comprehensive regulations must precede taxation to foster a stable and transparent crypto market.
