South Korea Targets Crypto Gains Over $1,740 With New Tax Bill as Parliamentary Debate Heats Up

South Korea is advancing plans to impose a tax on cryptocurrency gains exceeding approximately $1,740 (2.5 million won) per year, moving the contentious policy debate to the National Assembly. The proposed legislation aims to tax virtual asset income above this threshold at a rate of 20%, marking a significant step in regulating the crypto market. This move comes amid growing political pressure and public scrutiny, with lawmakers now tasked with finalizing the tax framework. The threshold is notably lower than initial proposals, reflecting a compromise to capture more retail investors while balancing market stability. The bill's progress will be closely watched by global crypto markets, as South Korea remains a major hub for digital asset trading, particularly for altcoins and tokens like BTC and ETH. The tax plan could influence investor behavior and market liquidity, with potential implications for exchanges and traders operating in the region.