South Korea’s Ruling Party Plans To Delay New Crypto Taxation Law

The ruling in the country, Democratic Party of South Korea, is planning to delay the upcoming taxation policy of digital assets. Taxing bitcoin and altcoin investors still lacks proper infrastructure, the officials say.

The Democratic Party of South Korea has objections to the upcoming law that plans to start taxing crypto gains. A new bill has passed that could suspend the legislation, which should have gone into effect at the start of 2022, according to a recent report.

According to Noh Woong-rae a member of the ruling Democratic Party, the Asian country does not have a well-designed plan to implement the taxing procedure. Therefore, delaying the initiative seems “inevitable:”

“In a situation where the relevant taxation infrastructure is not sufficiently prepared, the deferral of taxation on virtual assets is no longer an option but an inevitable situation.”

Woong-rae also said that the Ministry of Finance’s policy of enforcing taxation over digital asset endeavors wouldn’t work as planned. He explained that it is difficult to secure the proper taxing of overseas operations with cryptocurrencies or peer-to-peer (P2P) transactions.

The Democratic Party would attempt to settle the issue bringing it up to the highest governing body of the nation – the National Assembly Woong-rae said:

“As the relevant laws for tax deferral and real tax cuts are currently pending in the standing committee, we will actively persuade fellow lawmakers so that they can be dealt with in the regular National Assembly.”

Hong Nam-Ki, the country’s Finance Minister, wanted to impose the new taxation law from the beginning of 2022. Saying that that this move is a matter of when not if:

“It’s inevitable; we will need to impose taxes on gains from trading of virtual assets.”

54% Of Koreans Approve The Crypto Taxation

While the country’s authorities have their doubts about the upcoming taxation of cryptocurrency assets, it is not the case with the majority of the Korean population.

A recent survey showed that nearly 54% of Koreans approve 20% tax on gains made from digital asset trading, and only 38.3% were against it. Breaking the results into generations, older locals were significantly more open to the idea, while nearly half of those aged between 20 and 29 opposed the incoming law. Interestingly, female Koreans were more supportive of the taxation rules than men.