• Tue. May 30th, 2023

South Korean Officials Announce To Postpone Proposed Cryptocurrency Taxation Policy To Next Year

Oct 9, 2021

South Korea has been, for many, a country providing favorable circumstances for the crypto community. However, the recent steps of regulatory appear to be signifying otherwise. In this respect, sometime earlier, an announcement was made by South Korean officials stating their intention to charge a tax of approximately 20% on the transactions of cryptocurrency. Indeed, it was considered that the Finance Minister of the country named Hong Nam-ki said “no” to all the requests made for delaying the National Assembly.

According to the proposals, “miscellaneous-income” would be the category under which all the profits earned over cryptocurrency transactions are to be placed having a new rate of tax. However, it appears to be that things have gone upside down. As per the native reports, the officials of South Korea are expected to delay the next taxation policy of virtual assets. They have postponed the present tax codes until 2023’s 1st January because the authorities require additional time for taxation over the tokens, for there is a scarcity of adequate infrastructure to deal with the matter.

For example, a participant of the dominant Democratic Party named “Noh Woong-rae” considers that there is no well-made structure in possession of the country for the implementation of the procedure of taxation. That is why delaying strategy is unavoidable. He also highlighted the other prominent reasons at the back of such delay. He added that the execution of planned work could not be done with the policy of the Finance Ministry for imposing taxation over the operations regarding cryptocurrencies. It is challenging to execute the adequate taxing of the P2P (peer-to-peer) transactions and the crypto activities that the overseas are doing.

Nevertheless, he is still aspiring for a rapid settlement with the “National Assembly.” He elaborated that the laws regarding the actual tax cuts and tax deferrals are presently waiting under the “standing committee.” He went on to say that they will enthusiastically persuade the associate lawmakers to deal with them during the systematic “National Assembly.” It is pointless to say that the “Finance-Minister” had reasonably dissimilar opinions regarding the same just a few months back.

The above-mentioned advancement should not be seen separately. For example, the public opinion about the move and their contribution to crypto adoption should also be taken into consideration while looking at the scenario. As per a new report, about 54% of the native population of South Korea is supporting the country’s efforts for taxing 20%. At the same time, just 38.3% are those who oppose this stance.

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