South Korean Political Parties in ‘De Facto Agreement’ over Crypto Tax Delay
The protracted political struggle over the South Korean crypto tax has entered a new – and possibly decisive chapter – with the major parties reaching a “de facto consensus” over a delay that could see traders allowed to transact tax-free until 2024.
As reported, both major parties have pledged to dump their hardline stance on crypto in what most analysts agree is a concerted vote-grab ahead of next year’s general elections – to be held in March 2022.
The ruling Democratic Party presidential nominee Lee Jae-myung has backed a year-long delay to the tax, which is slated to launch on January 1, 2021. Unless it is unamended, a soon-to-promulgate package of tax laws will see annual crypto trading profits of over USD 2,100 taxed at a flat rate of 20%.
Lee’s opposition rival also wants to delay the tax by at least 12 months, and a crypto sector champion, the opposition People’s Power Party MP Cho Myung-hee, has led a tireless campaign to derail the tax.
The matter came to a head this Thursday when a large glut of crypto tax-delaying private members’ bills hit the parliamentary committee stage. Committee members had voted in favor of bringing a draft amendment to the National Assembly – only for the government to make a last-gasp intervention. The Ministry of Strategy and Finance raised an objection that forced committees to re-table the issue at another committee summit on Friday.
The Moon Jae-in administration has taken a hardline stance on crypto, banning initial coin offerings (ICOs) and blocking games that make use of tradeable non-fungible tokens (NFTs).
The protracted political struggle over the South Korean crypto tax has entered a new – and possibly decisive chapter – with the major parties reaching a “de facto consensus” over a delay that could see traders allowed to transact tax-free until 2024.
As reported, both major parties have pledged to dump their hardline stance on crypto in what most analysts agree is a concerted vote-grab ahead of next year’s general elections – to be held in March 2022.
The ruling Democratic Party presidential nominee Lee Jae-myung has backed a year-long delay to the tax, which is slated to launch on January 1, 2021. Unless it is unamended, a soon-to-promulgate package of tax laws will see annual crypto trading profits of over USD 2,100 taxed at a flat rate of 20%.
Lee’s opposition rival also wants to delay the tax by at least 12 months, and a crypto sector champion, the opposition People’s Power Party MP Cho Myung-hee, has led a tireless campaign to derail the tax.
The matter came to a head this Thursday when a large glut of crypto tax-delaying private members’ bills hit the parliamentary committee stage. Committee members had voted in favor of bringing a draft amendment to the National Assembly – only for the government to make a last-gasp intervention. The Ministry of Strategy and Finance raised an objection that forced committees to re-table the issue at another committee summit on Friday.
The Moon Jae-in administration has taken a hardline stance on crypto, banning initial coin offerings (ICOs) and blocking games that make use of tradeable non-fungible tokens (NFTs).