South Korea Debates Raising Crypto Tax Exemption to $35,900

In South Korea, a significant development is brewing as the opposition Democratic Party of Korea (DPK) proposes raising the crypto tax exemption to 50 million won (approximately $35,900). The move can help bring additional capital in the local digital asset market as sound regulations gradually take shape in the country.

According to a report from local media outlet Seoul Shinmun, the National Assembly’s Strategy and Finance Committee will discuss the DPK’s proposal on November 26th to reach a decision. This follows the DPK’s recent disapproval of the government’s decision to delay the planned crypto taxation framework until 2027.

Read also: South Korea’s Crypto Tax Decision Postponed, Uncertainty Looms

The ruling People Power Party (PPP) recently stated that it is considering implementing crypto tax policies in 2027. The party wants to postpone taxing cryptocurrencies to allow the market to mature and give authorities time to establish a comprehensive regulatory framework for cryptocurrencies.

Although there have been internal calls to delay crypto taxes, the DPK decided to compromise with the government and significantly increase the exemption limit from the current 2.5 million won ($1,795). However, it’s clear that South Korean political parties have differing views on regulating digital assets.

The Voting Process

The Seoul Shinmun reported that the DPK’s proposal will be voted on in the taxation subcommittee on November 25th, with the party aiming for full approval from the Finance Committee the next day.

Initially, many expected the opposition party to agree with delaying crypto taxation because the DPK recently agreed to abolish the capital gains tax on financial investments. However, it’s now evident that the party is prioritizing policies that support the crypto sector.