South Korean lawmakers have proposed abolishing the cryptocurrency income tax scheme scheduled to be implemented in 2027.

According to South Korean news outlet Digital Asset, the right-wing People Power Party introduced a bill on Thursday aimed at revising the income tax law to completely eliminate the tax on cryptocurrency gains. The bill was proposed by Song Eon-seok, the party's caucus leader. South Korea currently plans to levy a maximum tax of 22% on cryptocurrency trading profits exceeding 2.5 million won (approximately US$1,665), which includes a 20% national income tax and a 2% local tax. Due to strong opposition from the industry and investors, South Korea has postponed the implementation of this tax regulation three times, with the original target date of 2022 already delayed. The National Tax Service of South Korea recently announced that they are developing an artificial intelligence-based system to track and analyze cryptocurrency transactions, which will be operational on January 1, 2027. The main reason given for the latest bill to eliminate the cryptocurrency tax is to ensure fairness and impartiality in taxing various investments. South Korea abolished a broader income tax on other financial investments such as stocks at the end of 2024, and critics argue that it is unfair to tax only cryptocurrency investors. (The Block)