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Kim Min-seok, leader of the ruling Democratic Party of Korea (DPK), speaks during the meeting of the party's supreme council at the National Assembly in Seoul, Wednesday. Yonhap — Kim Min-seok, leader of the ruling Democratic Party of Korea (DPK), speaks during the meeting of the party’s supreme council at the National Assembly in Seoul, Wednesday. Yonhap

The ruling Democratic Party of Korea (DPK) on Wednesday formally proposed that the government postpone the implementation of taxation on cryptocurrencies, set to take effect next year.

The party’s supreme council decided to make such a proposal in a meeting, considering the need to give businesses and investors time to adjust to the new taxation scheme, according to DPK leader Kim Min-seok.

“We agreed that it would be better to first enact the Digital Asset Basic Act to build an overall framework and allow time for companies and investors to adapt after a comprehensive review of taxation principles, domestic industry conditions and fairness among users,” Rep. Kim said.

Korea first introduced a taxation scheme on cryptocurrencies in 2020, but its implementation has been repeatedly postponed, with the taxation now set to take effect Jan. 1. If the latest proposal is accepted, it would mark the fourth delay.

Under the scheme, annual cryptocurrency gains exceeding 2.5 million won ($1,880) will be subject to a 22 percent tax, including the local income tax.