South Korea’s ruling party proposes delaying crypto tax

South Korea’s ruling Democratic Party has formally proposed delaying the country’s cryptocurrency income tax, saying a digital-asset law and more preparation should come before taxation. The proposal does not change the existing law, which schedules the tax to begin January 1, 2027; any delay would require approval. Party leader Kim Minseok said the party’s supreme council backed the proposal at a meeting at the National Assembly. He said the party wants the Digital Asset Basic Act enacted first, giving businesses and investors time to adapt to a broader regulatory framework before the tax takes effect. Under the current framework, a 22% tax, including local income tax, applies to annual gains from transferring or lending cryptocurrency above 2.5 million won. The scheme was introduced in 2020 and its start has been postponed three times. If the latest proposal is adopted, it would be the fourth delay. Kim said the party would set a clear deferral period and use any additional time to prepare overseas transaction information, verify tax-related IT systems and provide guidance to taxpayers. He said the proposal followed consultations through the party’s Strategy and Finance...