South Korea’s ruling party signals no further delay to crypto tax

South Korea’s Democratic Party appears set to press ahead with taxation on gains from virtual asset investments, with no separate discussions under way on extending the current tax delay, Financial News reported. The party cited the principle that income should be taxed wherever it arises. Under the Income Tax Act, the tax is set to take effect on Jan. 1 next year. If the ruling party and the government do not pursue additional talks on another delay, taxation on virtual asset investment gains at a 22% rate will effectively become a reality. Even with that stance, concerns are growing over incomplete legal requirements. Legislation on a basic digital asset law has not been finalized. The bill is intended to regulate the broader market, including the issuance, distribution and disclosure of digital assets, while around 10 related bills remain pending in the National Assembly. As a result, market rules remain largely absent.