South Korean Financial Subcommittee Discusses Delay of Crypto Tax Law

South Korean Financial Subcommittee Discusses Delay of Crypto Tax Law

A local media outlet noted that all the parties involved had heated discussions in the meeting about the matter.

A subcommittee under the National Assembly Strategy and Finance Committee in South Korea had initiated discussions on Monday on the possibility of delaying taxing gains from crypto trading.

According to The Korea Times, members of the finance ministry and legislators of the Democratic Party of Korea (DPK), and opposition parties are involved in the talks. In fact, the local media outlet says all of them exchanged ‘heated opinions’ on the matter.

There is public opinion‘s turmoil about the so-called crypto tax that seeks to impose a 20% tax on crypto gains, classified as ’miscellaneous incomes, and which applies to mining operations and ICOs could not come into effect starting January 1, 2022. Additionally, the ministrys plan wanted to tax on gains made in one year of over $2,125.

But other issues discussed in the meeting were trimming the threshold established of starting to tax gains of over $2,125. “There should be taxation where there is income,” Hong Nam-ki, Deputy Prime Minister and Finance Minister, commented in a statement. Also, lawmakers are concerned about how they could trace gains made in overseas cryptocurrency exchanges unless people declare them on their tax filings.

Recent Crypto Taxs Survey

“Young investors call into question Hongs claim that the taxation infrastructure is more than established because measures to preserve and monitor user data on local crypto exchanges by using real-name accounts issued by domestic commercial lenders still falls short of identifying overseas trading,” the Korea Times stated.

In September, a study conducted by the Korea Social Opinion Research Institute (KSOI) revealed that most South Koreans want the government to tax cryptocurrencies. The survey was conducted between September 17 and September 18, where it found that just 33% of the participants opposed the crypto tax law. The media outlet noted that 1,004 adults participated in the KSOI study, and 55,3% answered ‘we should pay a tax on virtual currencies.’