South Korea‘s People Power Party has proposed a significant delay in the taxation of cryptocurrency investment profits. This delay is part of their election promises to establish a robust regulatory framework before enforcing taxation.

The party, adhering to the principle of “taxation after selection fee,” aims to extend the implementation of crypto taxes to 2027. This extension surpasses the earlier delay from January 2023 to January 2025, providing additional time for the formulation of a comprehensive tax foundation for digital assets within the 22nd National Assembly.

Safeguarding Public Assets

A spokesperson from the People Power Party underscored the government’s commitment to protect public assets and well-being through a thoughtful tax policy. They emphasized the risks associated with imposing taxes in the absence of a solid tax infrastructure for the burgeoning crypto landscape.

Addressing the current landscape, the party raised concerns about the lack of effective transaction oversight, drawing parallels with traditional stock exchanges. They particularly highlighted instances where proof of income is transferred to virtual asset companies, further justifying the necessity for a delayed taxation approach.

Pledge for Future Amendments

As part of their commitment, South Korea’s People Power Party proposed delaying any tax-related amendments for at least two years, framing it as a pledge for the 2030 general election. This strategic move aims to garner support and align with the evolving dynamics of the crypto space.

Additional Regulatory Measures

The party also delved into forthcoming crypto regulations, indicating a broader scope that includes guidelines for crypto custody providers and regulations for token listings. These measures will complement South Korea’s initial crypto regulations set into effect in July 2024, reflecting the government’s proactive approach to navigating the cryptocurrency landscape.