South Korea moves to repeal crypto gains tax

South Korea's ruling party seeks to repeal the 22% crypto gains tax, citing unfairness and administrative issues. The tax, delayed several times, now faces strong legislative opposition.

South Korea is witnessing a major legislative push to repeal its planned digital asset tax. This tax would impose a 20% national and 2% local levy on annual cryptocurrency gains exceeding 2.5 million won. The People Power Party has introduced bills and amendments to the Income Tax Act, aiming to eliminate all digital asset taxation clauses before the tax's scheduled enforcement. The implementation date has already been postponed several times and is currently set for either 2025 or 2027, depending on the source. Lawmakers argue that taxing crypto separately from other financial investments—whose taxes were abolished in 2024—creates unfairness and inconsistency in the tax system. The proposals also highlight concerns about double taxation and administrative challenges, especially for foreign investors. This legislative move follows months of industry consultation and parliamentary debate, marking a significant development in South Korea's ongoing discussion on digital asset regulation and tax fairness.