South Korea’s People Power Party Pushes for Taxation Postponement
The ruling People Power Party in South Korea is advocating for a two-year extension on cryptocurrency investment gains taxation. This move is part of the party’s campaign for the upcoming general election in April. The program, originally scheduled for 2023 and then rescheduled for January 2025, may now be pushed to 2027.
Requesting an Extension on Tax Policy
The People Power Party argues that the government’s tax policy protects the public’s assets and well-being. They highlight the risks of implementing taxation without a solid tax base and point out that there is no regulatory framework similar to stock exchanges in place. The party believes that postponing the taxation will allow time for necessary amendments and the establishment of a robust regulatory system.
New Crypto Regulations in South Korea
South Korea’s new crypto regulations will include guidelines for token listings and crypto custody providers. These measures will add to the country’s existing set of crypto regulations, which will take effect in July 2024.
Crypto Tax Reform Considered
Last month, there were discussions within South Korea’s legislative body about potentially abolishing income tax on cryptocurrency assets. However, the People Power Party proposes harmonizing the crypto tax threshold with that of stocks to create a more equitable tax framework. Currently, a 22% tax is imposed on crypto gains exceeding 2.5 million Korean won ($1,875), while stock gains are only taxed beyond 50 million won.
Government Initiatives and Discussions
In December 2023, South Korea announced a policy requiring high-ranking public officials to disclose their cryptocurrency holdings starting from the following year. This aims to prevent potential conflicts of interest among government officials. Additionally, South Korea’s financial oversight head plans to discuss the cryptocurrency industry with the U.S. SEC Chairman, focusing on spot Bitcoin ETFs.
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