South Korea’s Ruling Party Advocates for Postponement of Cryptocurrency Tax
The ruling People Power Party in South Korea is pushing for a two-year postponement of the taxation on gains from cryptocurrency investments, with the intent to make it a campaign promise for the upcoming general election. The party aims to prioritize establishing a comprehensive regulatory framework for cryptocurrencies before implementing taxation measures.
Proposal for New Regulations
According to local media outlet Herald Business Daily, the right-wing party plans to propose a new set of regulations addressing the crypto industry in the upcoming term. By focusing on regulatory measures first, the party aims to delay the implementation of the crypto gains tax, currently scheduled to take effect in January 2025, to 2027.
- The proposed delay would push the tax plan to start in 2027.
- The ruling party is considering introducing a bill that encompasses essential elements for potential crypto regulations, such as requirements for crypto custody providers and guidelines for token listing.
- If implemented, these regulations would supplement South Korea’s initial set of crypto regulations set to become effective in July.
Tax Reforms and Disclosures
The ruling party also aims to harmonize the cryptocurrency tax threshold with that of stocks, and a representative from South Korea’s Ministry of Economy and Finance has suggested discussing the possibility of abolishing income tax on crypto assets.
- In December last year, South Korea announced that high-ranking public officials will be required to disclose their cryptocurrency holdings starting next year, as an effort to maintain ethical standards and avoid potential conflicts of interest in the public sector.
- Lee Bok-hyun, South Korea’s head of the Financial Supervisory Service, aims to visit the United States to discuss the crypto industry with U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, specifically regarding spot Bitcoin ETFs.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
