The first major party in the Korean National Assembly, the Democratic Party, plans to implement a tax on cryptocurrency profits starting from early 2025, taxing cryptocurrency gains at 20%. However, the tax-free allowance limit will be raised from the original 2.5 million KRW (1,795 USD) to 50 million KRW (35,919 USD). (Background: If you don't pay taxes, liquidate your Crypto! South Korea issues an ultimatum to 17 cryptocurrency citizens with tax debts) (Supplementary background: Ministry of Finance: Profits from buying and selling Bitcoin will be taxed! Plans for 'enhanced tax audits' will be formulated within 3 months) According to reports from South Korean media (Seoul News), the Democratic Party intends to proceed with the plan to tax cryptocurrency profits starting from January 1, 2025, rather than further delaying it. Next year, a 20% cryptocurrency capital gains tax is set to be implemented, and the tax-free allowance is proposed to be increased. A 20% tax on cryptocurrency gains (plus local taxes, totaling 22%) was originally scheduled to take effect on January 1, 2022. However, due to strong opposition from cryptocurrency investors and industry experts, the plan has been delayed twice to January 1, 2025, despite discussions and proposals for further delays, one of which suggested postponing it until 2028. Nonetheless, the Democratic Party remains committed to implementing the tax plan as scheduled. The Democratic Party is also revising the tax plan and seeking to increase the tax-free allowance limit on cryptocurrency gains from 2.5 million KRW (1,795 USD) to 50 million KRW (35,919 USD). Reports mention that the revised bill introduces a new clause allowing taxpayers who find it difficult to confirm the actual acquisition cost of virtual assets to use a certain percentage (up to 50%) of the total sales amount as an alternative basis, meaning that up to half of the sale amount could be tax-exempt. The Democratic Party plans to pass this amendment in the tax subcommittee of the Planning and Finance Committee of the Korean National Assembly on the 25th and review it in the full session on the 26th. Although the Democratic Party had previously assisted the government in abolishing the financial investment income tax, it is considered acceptable to delay the taxation of virtual assets. However, they ultimately chose to settle the controversy by setting conditions to attract investors. The Democratic Party decides to abolish the financial investment income tax while pushing for the taxation of virtual assets, which is expected to provoke backlash from investors. However, the Democratic Party believes that raising the tax-free allowance effectively amounts to abolishing the taxation of virtual assets, as very few investors will earn more than 50 million KRW in cryptocurrency gains, resulting in limited actual taxation effects. A relevant person from the Planning and Finance Committee stated: If the tax-free allowance is set at 50 million KRW, assuming a yield rate of 5%, the investment amount would need to exceed 1 billion KRW, which means that only a few large investors would be taxed, while most investors could remain tax-exempt. The Democratic Party also accused the government of insisting that the tax-free allowance not be adjusted and only advocating for a delay, arguing that this was a "political trick" to reuse the virtual asset delay issue in the next election. But honestly, a profit of 35,919 USD may still be a low figure for South Korean cryptocurrency investors, and the government may have underestimated the potential profit margin that crypto investments could bring. Will Taiwan follow suit? It is worth noting that Taiwan's Ministry of Finance recently also expressed that profits from cryptocurrency trading will be taxed, stating that according to current tax laws, cryptocurrency is not considered currency, but rather a digital asset for trading. As long as there are profits from asset transactions, taxes must be levied. However, since it is self-reported, audits need to be strengthened, and the Ministry of Finance will also cooperate with the Financial Supervisory Commission to establish a special law for virtual assets, which will lead to new auditing measures in the future. Finance Minister Chuang Tsui-yun promised in the Legislative Yuan this week that within three months, measures related to the taxation audit of cryptocurrency trading profits will be proposed. It is expected that Taiwan will refer to the experiences of other countries to create a more complete cryptocurrency taxation system, and the South Korean case, especially its determination of the tax-free allowance, may become a reference for Taiwan. Related reports include South Korean internet celebrities selling junk coins for 210 million USD, a YouTuber with 620,000 subscribers whose home is filled with money, becoming the mastermind of a fraud group, and a rare '1% discount' in the South Korean Bitcoin market signaling a potential reversal for BTC. "South Korea plans to implement a 20% cryptocurrency capital gains tax in 2025; will Taiwan follow suit?" This article was first published in BlockTempo (the most influential blockchain news media).