South Korea’s ruling party proposes another delay to crypto tax

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South Korea’s ruling Democratic Party has formally proposed postponing the planned tax on cryptocurrency gains, which is due to take effect on 1 January 2027.

Party leader Kim Min-seok said the proposal followed consultations with the government, lawmakers and crypto businesses. He argued that authorities should first pass the Digital Asset Basic Act, which would establish a comprehensive legal framework for the sector, and give investors and companies time to adjust to the new rules.

The tax would apply a 22% rate, including local tax, to annual gains from crypto transfers and lending above a 2.5 million won ($1,869) allowance. If approved, the delay would be the fourth since the levy was first legislated in 2020.