South Korea pushes its combative 20% cryptocurrency tax by a year, scheduling it for 2023. The National Assembly decided to postpone the tax after the argumentative push and pull between parliament members and the government.
As reports by CoinGeek showed, the government had insisted over the past few months that tax will remain untampered, going as planned from 2022 January. Initially, the lawmakers had scheduled it to start in 2021 October. However, they had to push it forward by three months due to a case highlighting inadequate preparation by the crypto space.
South Korea Financial Ministry now declared that the National Assembly passed a bill that postponed the tax. If parliament’s plenary sessions approve the taxation law, digital industry players will have to wait until 2023.
Keep in mind that the ministry has been driving the tax motion. Hong Nam-ki, a minister, told the parliament that the tax would start operating as planned in 2020 despite the opposition by some parliament members and delays by the crypto industry.
The new tax change suggests a 20% levy on crypto profits exceeding 2.5 million won, equivalent to $2,100.
Korea Blockchain Association first asked for the tax postponement, stating that the tax agency and digital asset industry were not ready for the rollout. Nevertheless, Democratic Party had its members of parliament stepping up, saying that the government met its initial massive obstacle.
Reuters reported that the opposition Party and Democratic Party members in the Finance and Strategy Committee united against the tax in the coming year, 2022. Keep in mind that controversy surrounds the tax. First and foremost, it mirrors stocks’ capital gain tax.
Nevertheless, stocks have the tax starting at $42,000 (50 million won), 20-times more than cryptocurrencies’. That seemed to disturb crypto players as they believe an unfair target. Meanwhile, the stocks’ taxation will also start in 2023.
Though the controversy, nearly 55% of South Koreans support the taxations, and only a third oppose it.KryptoSeoul CEO Erica Kang told Bloomberg that not every crypto enthusiast is against digital asset taxation. He trusts that doing the tax as required can ease volatility and speculative bubble in the long run.