South Korea's People's Power Party Proposes Delay in Crypto Tax Implementation

South Korea's ruling party, the People's Power Party, has officially suggested postponing the enforcement of the nation's tax on cryptocurrency trading profits. The proposal, submitted on July 12, highlighted the declining sentiment towards crypto assets and cautioned against hastily imposing taxes on virtual currencies. The party argued that due to the higher risks associated with crypto compared to stocks, investors may exit the market if income tax is introduced. Originally planned for January 1, 2025, the implementation of the crypto gains tax could be delayed until January 1, 2028, pending approval of the proposal. The party emphasized the need for a comprehensive crypto framework before taxation, stressing the importance of establishing oversight mechanisms for crypto transactions. This move comes after previous delays in the implementation of the tax, reflecting ongoing concerns over investor interests in South Korea's crypto market.