South Korea again postpones cryptocurrency tax until 2027

Park Chan-dae, the leader of the Democratic Party of Korea, South Korea's largest opposition party, announced that it would abandon the plan to implement cryptocurrency profit tax in 2025 and agreed to postpone it for another two years to 2027. The proposal to "postpone cryptocurrency profit tax" was proposed by the South Korean government and the ruling People Power Party. The Democratic Party previously said that postponing taxation was a political trick of the ruling party. Initially, South Korea planned to impose a 20% tax on cryptocurrency gains (22% as local tax), which was originally scheduled to take effect on January 1, 2022. Due to strong opposition from investors and the industry, the plan has been postponed twice to January 1, 2025. After today's press conference, the tax collection was postponed again to 2027. The ruling People Power Party also proposed that "the two-year grace period for crypto profit tax is still not enough and should be relaxed to 2028. It is not advisable to quickly tax cryptocurrencies, and investors may leave the market. The People Power Party hopes to postpone the implementation time to 2028 to fulfill its promise during the election." (Cointelegraph)