South Korea Delays Crypto Tax Regulation Framework

South Korea is delaying regulatory framework for taxation of cryptocurrencies and the Democratic Party of Korea plans to shift policy on digital assets.

South Korea’s ruling Democratic Party plans to delay its tax policy on digital assets and officials still lack the right infrastructure to tax bitcoin and altcoin investors. The Democratic Party of Korea has many objections to an upcoming law that plans to tax income from crypto investments. They reportedly even passed a new bill that could suspend the law, which will come into force in 2022.

Noh Woong-Rae, a 64-year-old member of the ruling Democratic Party, said the Asian country had no plans to implement the new tax regime and a delay in the initiative seemed inevitable:

“In a situation where the relevant tax infrastructure is not fully prepared, tax deferral for virtual assets is no longer an option, but an inevitable situation.”

Woong was also informed that the Treasury Department’s tax enforcement policy on digital asset efforts will not work as planned. He explained that it was difficult to ensure proper taxation of offshore activities involving cryptocurrencies or peer-to-peer transactions. With this, politicians were saying the Democrats would try to address the problem and bring it to the nation’s highest governing body, Congress:

“As the relevant laws on tax deferrals and tax cuts are approved by the Standing Committee, we will actively convince the other legislators so that they can be dealt with in the regular Congress.”

South Korean Finance Minister Hong Nam-Ki appears determined to pass the new law earlier this year, and he even predicted that the move would only be problematic if:

“That is inevitable; We need to levy taxes on the income from trading virtual assets. “

South Korea is delaying a crypto tax bill while the country’s authorities have their own doubts about an impending crypto wealth tax. Nearly 54% of them reportedly approve of South Korea’s plan to impose a 20% tax on profits from digital asset trading, and 38% oppose it.