Doraez

According to Odaily, South Korea's ruling party is moving forward with plans to implement a tax on cryptocurrency gains starting in early 2025, opting not to approve further delays. Initially, a 20% tax on cryptocurrency profits, with an additional 2% local tax, was set to take effect on January 1, 2022. However, due to strong opposition from investors and the industry, the implementation was postponed twice, now scheduled for January 1, 2025.

The ruling party is currently revising the plan to increase the tax exemption threshold for cryptocurrency gains. Originally, gains below 2.5 million Korean won (approximately $1,795) were exempt from taxation. The proposed revision aims to raise this exemption limit to 50 million Korean won (around $35,919). This adjustment reflects the government's response to the concerns of investors and industry stakeholders, who have been vocal about the potential impact of the tax on the burgeoning cryptocurrency market in South Korea.

The decision to move forward with the taxation plan underscores the government's commitment to regulating the cryptocurrency sector while balancing the interests of investors. By increasing the exemption threshold, the ruling party seeks to alleviate some of the financial burdens on smaller investors, potentially fostering a more favorable environment for cryptocurrency trading and investment. As the implementation date approaches, stakeholders in the cryptocurrency industry will be closely monitoring any further developments or adjustments to the proposed tax regulations.