The South Korean government is expected to further postpone the capital gains tax on cryptocurrencies, and this time it may be delayed by two years, implementing it only in 2027. According to local media (ChosunBiz) reports on Sunday, this decision has been agreed upon by the ruling People Power Party and the main opposition Democratic Party, and the relevant bill will be submitted for a vote in the National Assembly on Monday.
This tax system was originally scheduled to start in 2022, with a tax rate of 20% (plus local taxes totaling 22%), but due to strong opposition from investors and the industry, the implementation date has already been postponed twice to 2025, and now it has been delayed again to January 1, 2027.
The Democratic Party insisted last month on pushing forward with the tax reform as scheduled, but to reduce the tax burden on some investors, they proposed raising the tax exemption threshold significantly from the original 2.5 million won (about 1,795 USD) per year to 50 million won (about 35,919 USD).
However, Park Chan-dae, chairman of the party's policy committee, stated at a press conference on Sunday that the delay in tax measures is due to the need for further improvement of the relevant regulatory framework.
South Korea is the most active market for retail cryptocurrency trading in the world, with a large number of young investors. Upbit, which focuses on serving local users, is South Korea's largest cryptocurrency exchange, and according to data from CoinMarketCap, the exchange's spot trading volume exceeded 11 billion USD in the past 24 hours, ranking 5th globally.
"Third delay! South Korea will postpone the '20% capital gains tax on cryptocurrency' until 2027" - this article was first published in (Blockcast).