Political turmoil affecting crypto taxes: In South Korea, political instability linked to an impeachment crisis is delaying cryptocurrency tax proposals. This has disrupted plans to delay the tax and eliminate the financial investment income tax. Despite support from investors and opposition, the bill’s progress remains stalled.
Crypto tax set for 2025, faces delays: If the proposed changes aren’t made, South Korea’s financial investment income tax and virtual asset tax will take effect on January 1, 2025. The tax plan, launched in 2021, intends to impose a 20% tax on crypto earnings exceeding 50 million Korean won.
Support for postponing tax to 2027: The opposition party, backed by investors, proposes delaying the tax to 2027. Korean Democratic Party’s Rep. Park Chan-dae supports this postponement. Initially, the taxation Threshold was increased from 2.5 million to 50 million won, reflecting efforts to ease investor concerns.