The People Power Party, a significant political force in South Korea, has suggested delaying cryptocurrency taxation for up to two years as part of its election promises. This proposal comes amidst ongoing discussions regarding the taxation of cryptocurrency income in the country.
Postponement of Taxation Until 2027
The party is considering pushing back the implementation of cryptocurrency taxation until 2027. This move reflects concerns about the current lack of a comprehensive regulatory framework for taxing virtual assets in South Korea.
Regulatory Framework Challenges
Although the National Assembly has passed initial legislation aimed at protecting users and regulating virtual asset businesses, there remains a need for further clarity regarding taxation. The party emphasizes the importance of establishing a robust regulatory system before imposing taxes on virtual assets.
Delays in Legislative Process
The process of setting up the necessary legal infrastructure for cryptocurrency taxation is expected to take considerable time. A leader from the People Power Party suggests that a delay of at least two years may be necessary to pass amendments and establish an effective taxation system.
Critics argue that the current taxation laws unfairly discriminate against digital assets compared to traditional stock income. Adjustments to the base amount for taxation are being considered to address these disparities.
