South Korea Delays Crypto Tax to 2027 as Deputy PM Affirms Pro-Crypto Stance
Korea’s Deputy Prime Minister Choi Sang-mok told the public the government is still pro-crypto despite the political turmoil.
On December 18, he said the government is “not negative on crypto” and is working on making regulations to protect customers and define digital assets.
This comes as the country is in political chaos after President Yoon Suk-yeol was impeached last month. The constitutional court has yet to confirm the decision but the interim government led by the People’s Power Party is vowing to manage the economy and pass the 2025 budget as smoothly as possible.
Crypto Tax Delayed to 2027
One of the big news in Korea’s crypto space is the National Assembly’s vote to delay the crypto tax until 2027. Choi said this was to allow the government to see how the regulatory environment develops before introducing taxes.
“The government is not negative on cryptoassets. As regulations and related systems are still in the process of being built, we decided to defer [the crypto tax].”
Korea’s central bank and financial regulators are working on new policies to protect customers while addressing broader crypto regulatory issues. These will aim to balance innovation and financial stability.
Trading Volumes Remain Resilient
Despite the political chaos, crypto trading on Korean exchanges Bithumb and Upbit is still going strong. The Korean won (KRW) is weakening against major currencies like USD and more investors are turning to digital assets as a hedge.
Key Points in Korea’s Crypto Space:
Political Turmoil: Crypto legislation was put on hold after President Yoon was impeached.
Budget Issues: The government is trying to resolve the 2025 budget disputes with the Democratic Party.
Crypto Strategy: Korea is watching US crypto moves including President-elect Trump’s crypto reserve.
Choi said the government is monitoring global crypto trends including Trump’s crypto policies but any concrete action will come after the new US administration takes office.
Korea’s crypto policy is all about being practical and innovative while stable. As the country goes through political turmoil, its stance on crypto remains unchanged.
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