South Korea Opposition Party Trying to Make Changes to Crypto Tax: Report

South Korea’s opposition People Power Party is preparing a proposal to delay the implementation of the country’s crypto tax legislation, as well as adjust the level at which taxes would kick in, according to a report in the Korea Herald.

• The bill would delay the legislation coming into effect from the currently planned Jan. 1, 2022, to the beginning of 2023.

• It would also alter the law from levying a 20% tax on cryptocurrency capital gains above 2.5 million won (US$2,125) to placing a 20% tax on gains between 50 million and 300 million won ($42,000-$251,000), and a 25% tax for profits above 300 million won.

• “It is not right to impose taxes first at a time when the legal definition of virtual currency is ambiguous,” the Korea Herald quoted Rep. Cho Myung-hee of the People Power Party as saying. “The intention is to ease the tax base to the level of financial investment income tax so that virtual currency investors do not suffer disadvantages.”

• Lawmakers are expected to submit the bill as early as Tuesday, according to the report.

• Last week, South Korean Finance Minister and Deputy Prime Minister Hong Nam-ki said the current legislation was ready to be implemented on Jan. 1 and that any further delays would “lead to the loss of public trust in government policy and undermine stability in the legal system.”

• Non-fungible tokens (NFT) appear to be exempt from the crypto taxes for now. However, South Korea does not currently classify them as “virtual assets.”