South Korean opposition set to tackle controversial crypto-tax law

Lawmakers belonging to South Korea’s opposition People Power Party have prepared a new challenge to the planned crypto-tax law. Accordin...



Lawmakers belonging to South Korea’s opposition People Power Party have prepared a new challenge to the planned crypto-tax law.

According to The Korea Herald, opposition lawmakers are defend for a one-year extension of the start of crypto-taxation in the country.

As previously reported by Cointelegraph, South Korea’s tax regime that will see the imposition of a 20% levy on cryptocurrency earnings over 2.5 million Korean won ($ 2,100) will come into effect in 2022.

In addition to the one-year deadline, lawmakers are also pushing for a phased tax levy for crypto in line with the financial investment income tax regime due to be implemented in 2023.

As part of the legislative proposal, instead of the government’s 20% flat rate on profits over $ 2,100, lawmakers suggested 20% on gains between 50 and 300 million won (42,000 to 251,000 $) and 25% on profits over 300 million won.

Commenting on the need to ease the burden on crypto investors, Representative Cho Myoung-hee argued that a tax regime for cryptocurrencies should be consistent with the country’s financial investment income tax.

Related: South Korean Lawmaker: Delaying Crypto Tax Laws “Inevitable”

People Power Party’s Challenge to Crypto Tax Bill follows a similar action by the legislator belonging to the ruling Democratic Party in September.

However, an agreement between lawmakers and the country’s finance minister would have put all plans to rest aimed at delaying the enactment of the crypto-tax law.

South Korea’s crypto tax regime is one of several stringent regulations the government has adopted in recent times that could shape the country’s cryptocurrency market in the future.

In September, the compulsory license requirement for South Korean crypto exchanges took effect, with several small platforms forced to close.