South Korea set to delay cryptocurrency taxation laws

The ruling Democratic Party of South Korea intends to pass a bill that could delay the taxation of cryptocurrencies in the country. According to officials, taxing digital currencies still lack a proper framework.

The Party is against the idea of enforcing taxation on gains made from cryptocurrency investments. A recent report stated that they have even passed a bill that could suspend the legislation slated to go into effect at the start of 2022.

Non Woong-Rae, a 64-year-old member of the ruling Democratic Party, said that the Asian country does not have a structured plan to implement a taxing system. Hence, delaying the initiative is 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 further stated that the Ministry of Finances’s policy of enforcing tax over virtual assets would fail because it is difficult to track overseas operations with crypto or P2P transactions.

He confirmed that the Democratic Party will try to settle the issue by taking it to the National Assembly.

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.

South Korea's finance minister, Hong Nam-Ki seems eager to impose the new taxation law from the beginning of 2022. He predicted earlier this year that it was now a matter of when and not if.

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

While there is doubt about digital assets on the part of Korean authorities, the majority of the public is optimistic about cryptocurrencies.