[News Today] DP AGREES TO DELAY CRYPTO TAX

[LEAD]
The Democratic Party has accepted the proposed two-year delay of the virtual asset income tax. Facing mounting pressure from virtual asset investors, the party changed its stance. The People Power Party welcomed the move, seeing it as a chance to refine the system.

[REPORT]
The Democratic Party has agreed to delay a tax on virtual asset investments for two years,

concluding through internal discussions that additional institutional arrangements are necessary.

Park Chan-dae / Floor Leader, Democratic Party
We have agreed to delay the crypto tax for two years after concluding through extensive discussions that more institutional modifications are necessary.

The main opposition party previously insisted on introducing a crypto investment income tax starting January next year, stressing its principle to tax all incomes made.

However, it changed its stance in the face of virtual asset investors' backlash, as seen in a petition signed by over 70,000 people calling for a delay of the new taxation plan.

Analysts believe the DP may have found it burdensome that 57 percent of crypto investors are in their 30s and 40s.

It is also known to have take into consideration the equality in taxation both for domestic and international investors and the difficulty to track transactions of virtual assets.

While welcoming the DP's decision, the ruling People Power Party said that delaying the crypto income tax is a reasonable step to ensure fair taxation on investors both at home and abroad, because it will be possible to internationally share information on virtual assets starting 2027.

But it criticized the main opposition party for giving into public opinions after being indecisive.

Choo Kyung-ho / Floor leader, People Power Party
We proposed to delay it for two years, begin taxing crypto income from 2027 when it‘ll be possible for countries to share tax information. But DP has given into public opinions after being undetermined.

However, the government and the ruling party will inevitably face criticism for damaging public trust in tax policy, as crypto tax has been postponed, following the abolishment of the financial investment income tax, which was supposed to go into effect next year.