South Korea’s ruling party has proposed delaying the introduction of a tax on crypto trading profits by nearly seven years.
The People’s Power Party submitted the proposal on July 12, citing declining public sentiment towards cryptocurrency. They argue that implementing the tax on virtual assets right now would not be advisable.
The proposal highlights that, given the higher risks associated with crypto compared to stocks, investors might exit the market if an income tax is imposed.
Originally, the crypto gains tax was scheduled to begin on January 1, 2025. If the proposal is approved, the start date would be pushed to January 1, 2028.
Keeping Campaign Promises
Ahead of the April general elections, the People’s Power Party pledged to delay the crypto gains tax by two years as part of their campaign promises.
On February 19, the party argued that before imposing taxes, South Korea should first establish a comprehensive regulatory framework for cryptocurrencies. They emphasized that taxation should only occur once this foundational framework is in place.
Additionally, the party noted that, unlike the stock market, there are currently no entities overseeing crypto transactions. They believe it will take about two years to develop a suitable system for this.
Summary Review: The People’s Power Party in South Korea is advocating for a significant delay in the implementation of the crypto gains tax, pushing the start date from January 2025 to January 2028. This proposal reflects concerns over the current regulatory environment and the risks associated with cryptocurrencies. The party has emphasized the need to establish a robust regulatory framework before introducing such taxes, ensuring that the system is well-prepared to handle the complexities of the crypto market. This move aligns with their pre-election promises and aims to provide a more stable and informed approach to cryptocurrency regulation.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
