- South Korea’s ruling People Power Party has proposed to postpone the taxation on crypto investment gains to 2027.
- The party envisions introducing a comprehensive regulatory framework before implementing taxation.
- The new crypto rules will include crypto custody providers’ requirements and token listing guidelines.
According to a report revealed by a local media outlet, Herald Business Daily, South Korea’s ruling People Power Party has proposed postponing the taxation on crypto investment gains as a general election pledge. The party envisions introducing a comprehensive regulatory framework prior to the implementation of taxation.
Aligning with the right-wing party’s principle of ‘taxation after selection fee,’ the party has proposed postponing the taxation implementation to 2027. While the program was earlier rescheduled from January 2023 to January 2025, the party currently intends to delay it for another 2 years to establish a tax base for virtual assets in the 22nd National Assembly.
A political leader from the People Power Party claimed that the government’s tax policy is intended to protect the public’s properties and lives. He also pointed out the potential risks of taxation without a tax base. Further, he shared insights on the party’s decision on the postponement of taxation, citing,
There is no place that tries to oversee transactions like the stock exchange, and there are cases of handing over proof of income to virtual asset companies. It will be a general election pledge aimed at 2030. I think there is a need for at least a two-year delay until the amendment is passed and such a system is actually built.
The new crypto regulations will reportedly include crypto custody providers’ requirements and token listing guidelines. These regulatory norms are poised to add to South Korea’s first set of crypto regulations slated to become effective in July 2024.
In related news, South Korea’s Financial Service Commission (FSC) remains firm on its crypto-restrictive policies. Though the US Securities and Exchange Commission (SEC) has approved the launch of Spot Bitcoin exchange-traded funds (ETFs), South Korea bans ETF-based crypto investments.
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