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Crypto tax law continues to face opposition in South Korea

Crypto tax law continues to face opposition in South Korea

Moon Jae-in, South Korea’s President, recently nominated Kim Boo-kyum as the Prime minister of South Korea. Prime Minister’s nominee is looking into the controversial Crypto tax law in South Korea. Therefore, the law may continue to face significant opposition from the proponents of the country.

KBS world’s report states that he is very keen to ensure no victims of the Crypto tax law, which is coming into effect in January 2022. Moreover, Kim’s comments came amid the growing opposition to this incoming Crypto tax regime.

Eung Sung-soo, the Chairman of the South Korea financial services Committee said that there is no intrinsic value to cryptocurrencies. Therefore, these comments further added tensions. Hence, he came under fire for the remarks he made on the use and validity of these assets.

The Crypto tax plan’s opposition is gaining momentum.

The South Korean Government is seeing a swell in opposition towards plans to levy taxes against cryptocurrency trading. As a means of normalizing taxation, the proposed 20% tax on income earned through the trade has been touted.

The tax applies to all transactions involving Crypto assets. However, some advocates and investors have been petitioning the government for the past three months. They are asking to allow some deductions on earnings.

Cracking down on the financial crimes

Following Eun’s remarks government announced that it would crack down on all the financial crimes that involve cryptocurrency investment fraud and scams. Authorities in Seoul seized the digital Assets of 676 individuals. Government accused of tax evasion to regulate the trade in cryptocurrencies.

These individuals collectively owe around $25 million to the government in overdue amounts. They were also among the 1,556 entities that the government discovered holding the Crypto across three Crypto exchanges. However, from next year, Crypto exchanges have to hand over records of all trades and transactions mandatorily.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.