Thursday 19 May 2022
Home / ethereum nfts / South Korea’s new president delays crypto taxes in favor of consumer protections

South Korea’s new president delays crypto taxes in favor of consumer protections

South Korea’s newly-elected president Yoon Seok-yeol announced Tuesday he would push to defer taxation on crypto investment gains at least until a new set of regulations called the Digital Asset Basic Act is enacted.

South Korea’s crypto tax was initially set to come into effect for the 2022 fiscal year, but was pushed back to 2023 last December. E-daily reported that Yoon will ensure the crypto tax law does not come into effect until a reasonable legislation is in place to protect consumers, which could be by 2024.

The president-elect’s presidential transition team has been exploring its options in delaying the tax since March, when Yoon won the election, on the grounds that there was insufficient legislation in place to justify levying taxes on digital assets.

DABA was conceived of by the Financial Services Commission (FSC) this year and entails a series of laws related to consumer protections. The act pertains to token issuances, nonfungible tokens (NFT), centralized exchange (CEX) listings, international finance as it relates to crypto, and includes a response to US President Joe Biden’s executive order on crypto.

Through DABA, the FSC plans on introducing a crypto insurance system as a backstop measure against hacks, system errors, and unauthorized transactions.

The controversial crypto tax legislation that's been delayed yet again would levy a 20% tax on crypto investment gains above about $2,100 per year.

An FSC representative told E-daily on Tuesday that “taxation of investment income from virtual assets should be done after investor protections are in place.”

South Korean crypto venture capital firm Hashed CEO Simon Kim agreed, telling Cointelegraph today that “it doesn’t make sense to impose a tax on cryptocurrency before enacting relevant statutes, which clearly state cryptocurrency-related businesses’ scope and are a prerequisite for taxation.”

“Without profound research on the industry and robust implementation strategies, promoting taxation on cryptocurrency can cause a variety of accidents and raise some serious issues in taxation equity because an investor protection system for cryptocurrency has yet to be implemented.”

Related: Upbit owner Dunamu could see 'monopoly' curbed after investment controversy

While the FSC works to draft new bills as part of DABA, Yoon plans to establish the Digital Industry Promotion Agency to serve as the reference point for regulatory issues in the crypto industry.

About Sean Patterson

Check Also

Nifty News: Robinhood to launch a Web3 wallet, LimeWire inks deal with Universal and more

Popular trading platform Robinhood is creating a noncustodial crypto wallet that will be compatible with multiple blockchains. The wallet will be a standalone application with the ability to store nonfungible tokens (NFTs) and connect to NFT marketplaces. A promo video released for the wallet shows a demonstration using Ethereum-based NFTs. The app is a significant step for the company in providing crypto services. Prior to January 2022, trading crypto on Robinhood was a closed system with users unable to withdraw cryptocurrency. On Jan. 21, Robinhood opened up crypto withdrawals to 1,000 users, allowing them to send crypto off the platform. That number was later expanded in April to the more than 2 million users on a waitlist. Currently, the wallet is limited by an identity verification process and only supports seven assets: Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ether (ETH), Ethereum Classic (ETC) and Litecoin (LTC). LimeysLimeWire, a peer-to-peer (P..

Leave a Reply

Your email address will not be published. Required fields are marked *