South Korea’s ruling camp said the timing of a virtual-asset tax launch will be decided only after a broader review of market conditions and institutional preparedness, rather than solely by the existing schedule.
At a Democratic Party-government consultation on virtual-asset taxation held at the National Assembly Members’ Office Building on Oct. 28, Democratic Party floor leader Kim Min-seok said authorities need to examine whether the current environment can support implementation without creating confusion or unfairness.
Kim links tax rollout to legal and market groundwork
Kim said income should be taxed where it is earned, but argued that the virtual-asset market still lacks a complete institutional foundation because the Digital Asset Basic Act has not yet been enacted.
He cautioned that moving ahead with taxation without properly reflecting how the crypto market and trading environment actually operate could undermine trust and cause confusion for taxpayers. His remarks framed the issue as one of readiness and design, not opposition to taxation itself.
Concerns raised over infrastructure, overseas exchanges and younger investors
During the meeting, Kim urged officials to take into account several practical risks before proceeding. He pointed to shortcomings in tax infrastructure, fairness questions involving transactions on overseas exchanges, and concerns among younger people who are active in the market.
According to the discussion, the consultation was intended to assess whether launching the tax next year could produce side effects, how those issues might be addressed, and whether the policy should still move forward on schedule.
Officials call for a practical review instead of a rigid timetable
Democratic Party lawmaker Cho Seung-rae and Deputy Prime Minister Lee Hyoung-il also argued for more checks on whether the current tax framework is truly ready. They said the virtual-asset market has changed substantially during the repeated postponements of the tax, making a fresh review necessary.
Cho said the decision should be made based on practical conditions rather than abstract taxation philosophy. He also suggested delaying a government notice related to crypto taxation so it would not be read as a sign that implementation is imminent.
Next step is a broader judgment on launch conditions
Lee said industry participants and experts broadly agree with taxation in principle, but contend that any system must reflect present market conditions. He added that the government plans to pursue a reasonable approach that can be implemented in practice through close consultation with the National Assembly.
For now, no final decision was announced. Participants said a conclusion will come after public concerns and institutional conditions are weighed, while work on the Digital Asset Basic Act is accelerated. That leaves the next-year launch under review rather than confirmed.
Source: en.bloomingbit.io