South Korea's ruling party backs two-year crypto tax delay

South Korea’s ruling Democratic Party agreed to recommend a two-year crypto tax delay to party leaders, according to Financial News.

The tax is scheduled to take effect in January 2027, following several previous postponements.

“While we agree with the basic tax principle that income should be taxed where it arises, the majority view was that, given various policy circumstances, it would be unavoidable to allow a period of preparation before implementation,” Democratic Party lawmaker Oh Gi-hyoung said in a statement.

Lawmakers cited the 2029 rollout of international crypto tax-information sharing as a reason for postponement.

“There was a view that the tax system should be updated to align with new classifications of business operators and transaction structures,” Oh Gi-hyoung said.

The proposed preparations include reviewing tax-data sharing between exchanges and the National Tax Service.

Lawmakers also want tax simulations using actual transaction data and checks of exchange-system stability.

The proposed delay would give South Korea more time to prepare its cryptocurrency taxation framework and supporting systems.