South Korea is expected to delay its crypto gains tax for another two years, local news outlets reported on Sunday. 

The country’s left-wing Democratic Party of Korea (DPK), which holds a majority in the legislature, said that it agreed to the two-year delay as proposed by the government and the ruling People Power Party, according to ChosunBiz. 

If approved, this would be the third time South Korea has postponed the 20% tax (22% with local tax) on cryptocurrency gains exceeding 2.5 million Korean won ($1,784). The proposed delay is set to be voted on during the plenary session of the National Assembly on Monday.

The Democratic Party previously pushed for the tax plan to take effect at the scheduled date of Jan. 1, 2025, but with a higher tax-deductible threshold of 50 million Korean won ($35,714) instead of the current 2.5 million won threshold.

Park Chan-dae, the floor leader of DPK, reportedly said at a press briefing on Sunday that the party agreed to the delay as it thought the tax plan required further regulatory refinement. 

South Korea is home to one of the world’s most active retail cryptocurrency markets. Upbit, the country’s largest cryptocurrency exchange that is regulated to serve only local customers, ranks fifth on CoinMarketCap’s list of top spot exchanges. It saw over $11 billion in trade volume in the past 24 hours. 

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