South Korean Crypto Tax Delay Push Continues Amid Market Volatility

South Korean investors are pushing for their fourth delay in implementing a crypto tax plan. The proposed tax, which would apply to annual gains from digital assets above a 2.5 million won ($1,856) basic deduction, has already been postponed three times since it was first discussed in 2022. Regulators insist on implementing the 22% tax as scheduled, citing that the National Tax Service will publish detailed tax standards later this year.

The push for a delay comes from concerns about inadequate tax infrastructure and crypto market structure. Many investors have taken to the National Assembly's electronic petition system, which allows citizens to propose legislative changes. A recent petition seeking to postpone the crypto tax plan by two years reached the 50,000-signature threshold, prompting legislative review.

A petitioner argued that taxing crypto now would be unfair to young people and drive investors to offshore platforms. They also claimed that high market volatility would generate very little actual tax revenue.