South Korean Democratic Party leader Kim Min-seok has suggested that lawmakers prioritize the passage of the Digital Asset Basic Act before implementing a crypto tax, according to Crypto Briefing. If accepted, the proposal would mark the fourth delay of South Korea's crypto income tax.
Tax Details and Timeline
The tax, initially scheduled to take effect in January 2027, applies a 22% rate on virtual-asset gains exceeding 2.5 million won. The proposed delay would push back its implementation until after the Digital Asset Basic Act is passed.
Market Reaction
Market participants appear to view the development as potentially creating a more favorable regulatory environment for cryptocurrency. In prediction markets, pricing for Bitcoin reaching $200,000 by the end of 2026 showed a slight increase in optimism, though probabilities remain low. The probability of Bitcoin reaching $100,000 by December 31, 2026, is priced at 10% YES, indicating cautious optimism among traders.
The source of the proposal, a Tier 3 social media account, suggests the market may be waiting for further confirmation before making more substantial adjustments.
What to Watch
Observers should monitor legislative developments concerning the Digital Asset Basic Act in South Korea, as its passage could influence global regulatory trends. Reactions from key market actors and potential legislative delays or advancements in other regions could further adjust market sentiment.
