South Korea Considers Delaying Cryptocurrency Capital Gains Tax

According to PANews, South Korea is contemplating postponing the implementation of its cryptocurrency capital gains tax to 2027. This decision follows a recent agreement among South Korean political parties to cancel a planned financial investment income tax. Initially, the cryptocurrency capital gains tax was set to be enforced in 2025. A representative from the Democratic Party of Korea indicated that delaying the tax is deemed necessary to ensure fairness. In July, the South Korean government proposed a tax law amendment that included the deferral of the cryptocurrency capital gains tax. However, the amendment's passage has faced uncertainty due to the Democratic Party's opposition to other government tax reduction policies. Min Byoung-dug, a member of the Democratic Party, emphasized the need for legal recognition of the virtual asset industry before imposing taxes on its income. He expressed support for the current decision to delay taxation on virtual assets, highlighting the importance of establishing a legal framework for the industry first.