The governing People Power Party in South Korea is pushing to delay the taxation on crypto investment profits by two years.
This might be a campaign pledge for the general election in April, which is fast approaching. The party’s first priority is to create a thorough framework for cryptocurrency regulation before considering any taxation policies.
Herald Business Daily reports that the right-wing party plans to introduce new crypto business rules in the next term.
Currently scheduled to take effect in January 2025, the party intends to postpone the introduction of the crypto profits tax by prioritizing regulatory procedures.
The tax proposal would not begin until 2027 as a result of this planned postponement. The current administration is thinking of drafting a measure that covers all the bases for possible crypto legislation as part of their preparation for the next election.
Crypto custody provider requirements and token listing standards are examples of potential provisions in such legislation.
South Korea’s first set of crypto rules is scheduled to take effect in July, and these restrictions, if passed, will accompany them.
The People Power Party aims to complete its primary election pledges by the month’s end. A spokesperson for South Korea’s Ministry of Economy and Finance recently made the suggestion that lawmakers consider doing away with income taxes on cryptocurrency.
This proposal is in line with the present government’s effort to abandon the proposed tax on financial assets, such as funds and stocks.
Herald claims that the People Power Party is considering a cryptocurrency tax, but they are not open to completely doing away with the idea.
Not only does the party want to put off taxes until later, but it also wants to bring the cryptocurrency tax level in line with the stock market’s.
For cryptocurrency profits beyond 2.5 million Korean won (about $1,875), the current tax proposal rates them at 22%.
Gains from stocks, on the other hand, are subject to taxation only when they exceed 50 million won. Public officials at the highest levels in South Korea will be compelled to reveal their crypto assets beginning in the new year, as declared in December of last year.
Proactively addressing such conflicts of interest and promoting integrity within the public sector was the stated goal of the country’s personnel ministry at the time.
The government’s goal in requiring cryptocurrency ownership declarations is to make sure that public officials are honest and don’t have any conflicts of interest with the cryptocurrency market.
All senior officials in the federal government would be subject to the rule. These public servants will have a legal obligation to disclose the types and quantities of cryptocurrencies they own.
The head of South Korea’s financial supervisory agency, Lee Bok-hyun, plans to meet with U.S. SEC Chairman Gary Gensler later this year to talk about the cryptocurrency business.
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