Lawmakers in South Korea hits another year delay in crypto tax law

lawmakers in South Korea seem like postponing taxation on digital assets for another year, which might be a massive win for the local crypto investors.

On November 29, the members of South Korea’s Tax Subcommittee in the National Assembly struck a bipartisan agreement by approving an amendment proposal that might postpone the crypto tax by 2023. If, on December 2, the amendment gets approval in a parliamentary session, taxation will be in effect from January 1, 2023, rather than 2022, as planned earlier.

Democratic lawmakers who pushed for the delay cited issues in the National Tax Service’s (NTS) proposed data gathering techniques. The country is known for its major participation in the crypto industry. South Korea recently also announced its plans for the development of the CBDC project.

South Korea finds inconsistency

However, this is not the first time that the country has delayed the crypto law in South Korea. The government is under attack by the opposition party for frequent delays in bringing the controversial crypto tax law.

Chairman of the Tax Subcommittee, Kim Young-jin, also noted the problem of the undefined status of the crypto or virtual asset. He said that while the citizens would be bound to pay the taxes on cryptocurrencies, the government has yet to adopt an official definition of cryptocurrencies or digital assets. He stated:

“There is an inconsistent system for imposing taxes without a clear basis on how to legally define cryptocurrencies in our system… but only in Korea does taxation come before regulation.”

TheCoinRise also pointed out the inconsistent behavior of the South Korean government, confusing crypto investors in the country.

On the other hand, tax implementation supporters, like Finance Minister Hong Nam-ki, believe that the system should just be fair so that individuals who profit from crypto trading pay their fair share to the country.