Democratic Party in South Korea Pushes for Cryptocurrency Taxation Without Postponement

Proposing an Amendment to the Tax Deduction Limit to 50 Million Won
Voted on 25th by the Tax Subcommittee of the Strategy and Finance Committee

Democratic Party in South Korea decided to raise the cryptocurrency tax deduction limit to 50 million won and deduct taxation without a grace period on Nov. 20. The negotiations between governing and opposition parties are drawing attention ahead of a vote by the Tax Subcommittee of the Strategy and Finance Committee on Nov. 20.

According to a local media report on Nov. 20, the Democratic Party decided to push for a tax law revision to raise the deduction for cryptocurrency trading profits from 2.5 million won to 50 million won.

Tae-ho Chung, a lawmaker of the Democratic Party of Korea, proposed a plan to raise the deduction of cryptocurrency transactions to 50 million won through an amendment to the income tax law proposed by the representative last month, and to recognize up to 50% of the total transfer price if it is difficult to confirm the acquisition price.

The revised bill proposed by the Democratic Party is scheduled to be voted on by a tax subcommittee of the Strategy and Finance Committee on Saturday and by a general meeting on Wednesday. If an agreement is not reached with the ruling party, the Democratic Party of Korea can pressure the implementation of the current law by rejecting the bill.

The Korean cryptocurrency community is reacting fiercely to the amendment proposed by the Democratic Party. This is because of a clause that imposes taxation on cryptocurrency without delay despite the previous decision to abolish the financial investment income tax (money investment tax). Currently, more than 30,000 people have agreed to the National Assembly's electronic petition requesting a suspension of taxation on cryptocurrency within a day of posting.

권승원 기자 ksw@blockstreet.co.kr