South Korean lawmakers push to abolish upcoming 22% crypto tax

South Korea's main opposition party, the People Power Party, has proposed a bill to completely abolish the planned 22% tax on digital asset gains, which is currently scheduled to begin on January 1, 2027. This tax, comprising a 20% national income tax and a 2% local tax on profits exceeding 2.5 million Korean won (about $1,665), has already been postponed three times due to industry and investor opposition. The rationale for the abolition centers on tax fairness, arguing it is inequitable to tax only crypto investors when broader income tax on other financial investments, like stocks, was recently repealed. The bill also cited the U.S. SEC's guidance classifying most crypto as commodities, suggesting they shouldn't be treated like securities. The ruling Democratic Party stated they will discuss the proposal, though it hadn't been a serious consideration for them previously. South Korea has a significant crypto market, with nearly one in five citizens participating as users or traders.

(Source：The Block)