South Korean opposition party go against controversial crypto tax law

Lawmakers of South Korean opposition party the People Power Party have lined up a fresh challenge to the proposed crypto tax law
Lawmakers of South Korean opposition party the People Power Party have lined up a fresh challenge to the proposed crypto tax law

Lawmakers of South Korean opposition party, the People Power Party have lined up a fresh challenge to the proposed crypto tax law.

If the reports by The Korea Herald are anything to go by, then the opposition lawmakers are presently clamoring for a one-year extension before crypto taxation begins in the country.

According to a previous report by Cointelegraph, by 2022, South Korea’s crypto tax regime will be coming into effect. And this regime will see to the imposition of a 20% levy on any cryptocurrency gains above 2.5 million Korean won ($2,100).

But asides the one-year delay, the lawmakers are also pushing an agenda for a tiered kind of tax levy for crypto which would be in line with the Financial Investment Income Tax regime that is set to be effected in 2023.

According to the provisions of the legislative proposal, instead of the stipulated 20% flat rate by the government on profits above $2,100, the lawmakers are suggesting 20% on gains between 50 million to 300 million won ($42,000 to $251,000) and 25% of profits above 300 million won.

Speaking on why it is absolutely necessary to ease the burden on crypto investors, Representative Cho Myoung-hee insisted that a tax regime for cryptocurrencies should be in direct resonance with the country’s financial investment income tax.

Meanwhile, the challenge of the South Korean opposition against the crypto tax bill follows after a similar action by lawmakers of the ruling Democratic Party back in September.

However, reports say that an agreement has been reached by the lawmakers and the country’s finance minister to halt any plans about delaying the implementation of the crypto tax law.

South Korea’s crypto tax regime is one of the very numerous strict regulations being enacted by the government recently, that also looks to shape the country’s cryptocurrency market moving forward.

In September, South Korea mandated crypto exchanges to fulfill licensing requirements, which ultimately forced several small platforms to shut down.