Positive Decision for the Crypto Market from South Korea

South Korea is preparing to delay the 20% tax regulation on cryptocurrency gains for another two years. According to local news sources, the ruling Democratic Party has approved this delay based on a proposal from the government and the ruling People Power Party.

The delayed regulation encompasses a 22% (including local taxes) tax on crypto gains exceeding 2.5 million Korean won. This will mark the third postponement of South Korea's crypto tax. A vote on the proposal is expected in today's general session of the National Assembly.

New Proposal for Tax Plan from Democratic Party Initially, the Democratic Party argued for the tax to take effect on January 1, 2025. However, it proposed to raise the tax exemption threshold from 2.5 million won to 50 million won. The party, however, decided to approve the delay after concluding that the tax plan required further adjustments.

Park Chan-dae, the Democratic Party's floor leader, announced the decision during a press conference on Sunday. Park stated that the tax plan is not yet sufficiently mature and that adjustments need to be made.

South Korea as a Significant Market for Cryptocurrencies South Korea hosts one of the most active cryptocurrency markets in the world. The country's largest cryptocurrency exchange, Upbit, is regulated to serve only local customers and ranks as the fifth largest spot exchange among crypto exchanges. Upbit has recorded a trading volume exceeding $11 billion in the last 24 hours.

The decision to delay the cryptocurrency tax in South Korea stands out as a notable development in the market. The future of the tax regulation will continue to hold significant prominence in the country's agenda concerning sectoral regulations and economic strategies.