South Korea's People Power Party Seeks Talks on Crypto Tax Delay

The People Power Party in South Korea is pushing for talks with the country's five largest cryptocurrency exchanges to discuss further delaying virtual-asset taxation. The tax, which was originally set to begin in 2022 but has been postponed three times, will now take effect in January 2027.

Under the current Income Tax Act, a 20% tax will be imposed on annual income from the transfer or lending of virtual assets that exceeds the basic deduction of 2.5 million won ($1,800). This includes an effective tax rate of 22%, factoring in local income tax.

The People Power Party has introduced bills to abolish taxation or delay it further. In March, lawmaker Song Eon-seok proposed an amendment to remove provisions taxing income from the transfer and lending of virtual assets.