Ruling party joins growing calls to delay crypto taxation

The ruling Democratic Party of Korea (DPK) has joined opposition lawmakers and industry groups in urging a delay to cryptocurrency taxation, amplifying the push to postpone the planned January implementation in 2027. The tax is currently set to commence on January 1, 2027, but doubts about the readiness of the tax system have been mounting as the deadline nears.

Rep. Min Byung-duk, a senior member of the DPK's policy committee, argued that taxation should be postponed until after the passage of the Digital Asset Basic Act. "It's not right to start taxation when the basic law has yet to be established. We need a solid foundation to collect taxes in a credible way, and that foundation is not yet in place," the lawmaker told attendees at a private virtual assets conference in Seoul.

Min highlighted challenges in tracking income from overseas exchanges and the absence of a system for carrying forward investment losses. He emphasized his concerns about the timing and readiness of the tax system, rather than the taxation concept itself. The DPK's calls for delay come as the government prepares to roll out the cryptocurrency tax.