Korea plans to tax more than $1,740 on the proceeds of encrypted currency

On 30 July, with the transfer of the political game into Congress, the Republic of Korea planned to tax proceeds of more than $1,740 in encrypted currency. As of 1 January 2027, the Republic of Korea will levy a 22 per cent tax on the proceeds of more than 2.5 million won (approximately US$ 1,740) in encrypted currency; the proceeds will be classified as “other income” and no loss is allowed to offset the gains. This measure, which was originally scheduled for 2022, has now been advanced in the National Assembly, although proposals to repeal the bill are also being made in the Subcommittee. Critics have argued that this may lead to capital outflows to overseas exchanges. The establishment of lower tax thresholds was a sign of government commitment, but also highlighted the challenges to enforcement and market competitiveness。