South Korea’s ruling party, the People Power Party, will host a closed-door forum on March 25 at Coinone’s headquarters with leaders from Upbit, Bithumb, Coinone, Korbit, and Gopax, as well as the Digital Asset Exchange Alliance (DAXA). The discussions will focus on abolishing the virtual asset taxation system set to take effect in January 2027 and soliciting recommendations regarding regulatory preparations, including stablecoin issuance and the second phase of related legislation.
On March 19, floor leader Song Yeon-seok submitted the Partial Amendment to the Income Tax Act proposing the abolition of income tax on virtual assets. He contends that, given the prior elimination of financial investment income tax, taxing virtual assets could be unfair and amount to double taxation, underscoring the need for tax system consistency.
The forum’s outcomes could influence the pace and shape of crypto regulation in South Korea, affecting market participants and the readiness of upcoming legislation. The discussions are expected to inform regulatory developments and industry readiness.
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