South Korea’s ruling party proposed to delay the crypto tax until 2028

South Korea's ruling People's Power Party has officially proposed delaying the implementation of the country's tax on crypto trading profits.

In the year On July 12, the party announced that sentiment about crypto assets is declining. The statement said a quick tax on virtual assets is “not recommended at this time”.

The proposal also argues that since crypto is more risky than stocks, investors are expected to leave the market if income tax is imposed.

The tax on cryptocurrency profits was initially decided to be implemented on January 1, 2025, but if the proposal is approved, the implementation of this tax will be extended until January 1, 2028.

Doing well on election prospects

Ahead of South Korea's general election in April, the People's Power Party has pledged to delay the implementation of the country's crypto gains tax for two years as part of its campaign.

In the year On February 19, the party argued that the country should create a comprehensive crypto framework before moving into taxation. The party underlined that crypto should be paid only after the basic framework is fully established.

In addition, a representative pointed out that, unlike a stock exchange, it does not have the authority to regulate transactions in crypto assets. The party believes that it is necessary to spend two years to establish this type of system.

Related: South Korean government to launch crypto transaction tracking system

Seven year delay in crypto tax implementation

Local media outlet The Korea Economic Daily reported that South Korea's crypto-earnings tax scheme is slated to be implemented for the first time in 2021.

However, due to backlash from crypto industry leaders and stakeholders, the government decided to push back the crypto profit tax to 2023. It was again set to go back to January 1, 2025.

If the ruling party's new proposal passes, the implementation of the crypto profit tax in the country will be delayed by seven years from its original schedule.

In South Korea, investors must pay a 20% capital gains tax if their annual profits exceed 2.5 million won (approximately $1,800). This threshold is significantly lower than for stocks, where only profits above 50 million won (about $36,000) are taxable.

Magazine: Lazarus Group's Favorite Exploit Revealed – Crypto Hacks Analysis