Lawmakers in South Korea to push back on crypto taxation

South Korean opposition lawmakers are seeking for at least a one-year delay before the enactment of a controversial law that seeks to task income from investing in cryptocurrencies.

The law is originally proposed to be implemented from Jan. 1, 2022. If implemented crypto investors would pay a 20% tax for profits above 2.5million WON to the government. The opposition lawmakers under the People Power Party have drafted a proposal to ease capital gain taxes on crypto which will be submitted on Tuesday.

The Korea Herald reports that opposition lawmakers are proposing a one-year delay for crypto taxation till 2023. More details revealed the lawmakers plan to revise the current taxation to 20% tax for profits between 50-300 million WON and 25% for profits above 300 million WON.

Rep. Cho Myoung-hee of the People Power Party said: “It is not right to impose taxes first at a time when the legal definition of virtual currency is ambiguous,”

Cho added: “The intention is to ease the tax base to the level of financial investment income tax so that virtual currency investors do not suffer disadvantages.”

Although the government of South Korea are bent on enacting the law come Jan. 1 2022. During a parliamentary hearing on Wednesday, Finance Minister Hong Nam-ki downplayed the possibility of delaying the bill. If enacted it would be one of the strictest regulations in the cryptocurrency industry.