South Korea's Ruling Party Joins Multiple Stakeholders in Calling for Postponement of Virtual Asset Tax Plan

TechFlow reports that on September 29, South Korea's ruling Democratic Party, along with opposition lawmakers and industry groups, jointly called for delaying the cryptocurrency tax plan originally scheduled to take effect in January 2027. Min Byung-deok, a member of the Democratic Party's Policy Committee, stated that implementing taxation before the Digital Assets Basic Act is established lacks sufficient legal and institutional foundations, and mechanisms for tracking income from overseas exchanges and carrying forward losses remain inadequate.

The Korean Digital Asset Exchange Association (DAXA) and more than 70% of surveyed domestic investors also voiced concerns and opposition regarding the current readiness of the tax system. However, Lee Hang-il, Minister of Strategy and Finance, maintained support for proceeding as scheduled, noting that the majority of individual investors' holdings fall below the tax threshold, thereby limiting the overall impact on tax burdens.