South Korea ruling party proposes crypto tax delay to 2029 for market readiness

Photo: Rostislav Uzunov / Pexels South Korea’s ruling party has proposed a delay in the implementation of a cryptocurrency tax, originally slated to begin in 2027, to 2029. This move aims to provide additional time to establish comprehensive market rules and ensure the readiness of transaction-data systems and exchanges. The proposed tax involves a 22% levy on income from virtual asset sales, with a 2.5 million won annual deduction. While this proposal has yet to receive final approval, it highlights ongoing concerns about the country’s regulatory framework for digital assets. The potential delay in crypto taxation has implications for the market, particularly for cryptocurrencies like Hyperliquid. Currently, the market for Hyperliquid reaching $100 by December 31, 2026, shows a 45% likelihood, reflecting increased confidence compared to previous weeks. Market participants appear to interpret the proposed tax delay as a positive development that could support investment and growth in the cryptocurrency sector. Key Takeaways The proposal to delay South Korea’s cryptocurrency tax until 2029 appears to provide more time for regulatory preparation and market rule-setting. Market pricin...