South Korean officials Postpone Crypto Tax, is it politics?

The Finance committee of South Korea approved the proposal to shift the crypto tax guidelines to take effect in 2023. 

A few months ago, Lawmakers of South Korea proposed crypto tax guidelines to impose high tax rules on crypto traders. 

According to the proposed crypto tax guidelines, every crypto trader needed to pay 20% tax on the crypto gains per year. However, earnings should be above $2,125 US dollars. So here we can expect that almost 99% of crypto traders in South Korea are under this new crypto tax rule. 

In the latest, the National Assembly Strategy and Finance Committee of South Korea approved the request of the politician and high authority people to delay this crypto tax bill. And now this will take into effect in 2023. 

The main thing here is that the crypto tax proposed bill was introduced a long time back but no one raised their concern on this bill till September. But after that many political parties’ leaders raised their issues. 

However, the crypto community of South Korea tried their best with a petition to force the government not to bring this crypto tax bill. Most of the crypto traders claimed that the current crypto bill is ok but here earnings and gains with the crypto are not fixed and also crypto traders have no safe option, so it will be too early to bring this bill. 

On the other hand, Korean officials said that crypto tax bills have lots of flaws and many things are needed to improve. 

Few politicians said that tax on the crypto industry is very high over the stock market and also few guidelines are not much better on the crypto traders, so we have to fix these things before implementing them. Many reports claimed that all the political parties are looking at the upcoming elections and in that situation, crypto tax rules may impact the results negatively.

However, on the other side, Hong Nam-ki, Deputy Prime Minister and Finance Minister said that the implementation of crypto tax is necessary to establish legal trust among the crypto community. He said:

“Any further delay in the already postponed enforcement will lead to the loss of public trust in government policy and undermine stability in the legal system”

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