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South Korea’s government has agreed to postpone its crypto tax until January 2027. The move follows the People’s Power Party’s plan, which succeeded despite pushback from the National Assembly’s majority, the Democratic Party.
Speaking on December 1, Park Chan-dae, the Democratic Party’s floor leader, said that they had agreed with the government’s plan. Currently, the National Assembly is dominated by the Democratic Party, but the People’s Power Party is the government.
According to Chan-dae, this will allow for “more institutional preparation” before leaping into the fray with crypto.
South Korea’s crypto tax plans
South Korea’s plans for its crypto tax will be delayed once again, making this the third time. The 20% tax will target those earning over 2.5 million Korean won ($1784) and was originally slated to start in January 2025. However, the Democratic Party did push for a much higher number, which has been slashed from 50 million won ($35,714) to 2.5 million.
Taxing cryptocurrency has become a hot-button issue in many governments. Russia is also currently pushing its own crypto tax bill through the government, as the war with Ukraine continues.
As of right now, FrameEx is the most popular trading platform in South Korea. The estimated trading volume sits around $9 billion. In 2020, the government introduced new legislation to combat money laundering.
Meanwhile, the incoming Trump administration has a few members of its potential cabinet already deep in the well of crypto. Robert F. Kennedy Jr. is a big proponent of the technology, and so is the next president, Donald Trump, who has since changed his mind on it.
Bitcoin is expected to hit $100,000 in the next few months, as its price keeps fluctuating as it draws closer and closer. It has hit a high of $98,000 in the last few weeks but hasn’t broken that ceiling just yet.
Featured image: Wikicommons, Bitcoin.org
