Latest news, South Korea has decided to postpone the 20% cryptocurrency tax originally scheduled for implementation in 2025 to 2027.

According to foreign media reports, the chief legislator of the Democratic Party, Chan-dae Park, announced at a press conference that the Democratic Party has agreed to the government's plan to delay the tax implementation for cryptocurrency traders by two years.

Initially, the Democratic Party (DP) proposed to raise the threshold for cryptocurrency taxation from 2.5 million won to 50 million won starting January 2025, but the government did not accept this proposal and instead supported the People's Power Party (PPP) proposal to postpone the cryptocurrency tax implementation to 2027.

Park explained that the government needs more institutional preparation before taxing cryptocurrency traders. He also stated: "After in-depth discussions on the postponement of virtual asset taxation, I believe it is time for further institutional reforms."

Park also added that the 13 bills proposed by the government, including cryptocurrency tax, inheritance tax, and gift tax, are still in the discussion phase and there is room for negotiation. This means that the original plan to impose a 20% tax on cryptocurrency traders who earned at least 2.5 million won may still change.

Park hinted that this is already the third time the South Korean government has postponed this virtual asset tax law, and if the government takes no action, we might achieve even greater tax reduction space. It was initially planned to be implemented in 2021, then postponed to 2025, and now it is being postponed to 2027.

Once this tax law is implemented, cryptocurrency traders with profits exceeding 2.5 million won (approximately 1,781 USD) will have to pay a 20% profit tax, as well as an additional 2% local tax.

In response, some major cryptocurrency exchanges have raised objections to the 2.5 million won threshold, claiming that if taxes are collected this way, trading volume may drop significantly.

South Korea's decision to postpone cryptocurrency taxation provides a buffer period for exchanges and market participants, giving them the opportunity to adjust their strategies and business models in response to changes in tax policy.

At the same time, this is a core issue about whether the market can find a balance on its own with less external intervention, ensuring stable growth and healthy development.