Delay in cryptocurrency tax law is “inevitable”

Noh Woong-rae, a member of the South Korean National Assembly and representative of the country’s ruling party, is reportedly planning to postpone a law clarifying the taxation of cryptocurrency until 2023.

According to a report by Naver News on Thursday, Noh said the Democratic Party of Korea plans to reverse the Treasury Department’s intention to tax virtual assets from 2022. Currently too tricky to guarantee, according to South Korean lawmakers. The data is used to pay taxes on cryptocurrency exchanges and through P2P transactions.

“In a situation where the appropriate tax infrastructure is not fully established, deferring the taxation of virtual assets is not an option, but an inevitable situation,” said the South Korean legislature.

Noh said his party intends to work with other officials to enact crypto tax laws through Congress rather than the Treasury Department, claiming otherwise would “undermine confidence in the government.” In April, Finance Minister Hong Nam-ki said the government plans to tax capital gains from trading cryptocurrencies starting next year.

Related: New rules may allow the South Korean government to arrest cryptocurrency from tax evaders.

Discussions are ongoing among Korean lawmakers about digital assets. Last year, the representatives planned to impose a capital gains tax of 20% on trading in cryptocurrencies from October 2020 with an annual profit of more than 2.5 million won – around USD 2,126 at the time of publication January 2022.