THE SUPREME TEAM: South Korean Opposition Party Seeks New Crypto Tax Law Amended

South Korean Opposition Party Seeks New Crypto Tax Law Amended

  • South Korea sets to combat some crypto tax laws.
  • Opposition lawmakers want to halt enacting the law for a year.
  • The tax law in question is already slated to take effect in 2022.

The world at large has come to see the light in crypto. But first, regulations have to be put in place to ensure a smooth run. While the South Korean ruling party gears towards making sure all loopholes are covered in terms of crypto regulation, the opposition party beg to differ.

In wake of a fresh crypto tax law planned to be enacted, opposition lawmakers from the People Power Party agitate over it. To them, the crypto taxation law should be extended for another year. The intended tax law will see the enforcement of a 20% levy.

The levy applies to crypto gains above 2.5 million Korean won ($2,100). Therein, the tax law is scheduled to take effect in 2022. Instead, the opposition legislatures are proposing to the government to adjust the tax law to a 20% levy on gains between 50 and 300 million won ($42,000 to $251,000). Also, a 25% crypto levy on profits above 300 million won.

Aside from the proposed one-year delay, the lawmakers are urging for a tiered tax levy for crypto. The tax levy is as per the Financial Investment Income Tax regime billed to be effected in 2023. The People Power Party’s agitations come weeks after similar advocacy was prompted by the ruling party in September.

Despite all the dust raised to delay the crypto tax enactment, South Korean Finance Minister Hong Nam-ki and some key Democratic lawmakers reached an agreement to move forward with the proposed dates.

Furthermore, we reported that the South Korean Government began cracking down on exchanges. It was a result of a compulsory crypto licensing requirement. Thus, some exchanges had to withdraw South Korean services from their platforms.

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