South Korean lawmakers are considering the possibility of “abolishing” a new crypto tax law, even before it goes into effect in six months. The National Assembly Legislative Research Service mentioned the potential debate on abolishing the crypto tax in the latest edition of the National Assembly Legislative Policy Guidebook.
Members of Parliament are expected to vote on proposals to eliminate a proposed tax on gold investment, raising concerns about discrimination against investors in other assets like stocks and crypto. The guidebook highlighted the belief that virtual assets are similar to stocks in terms of being investment-focused assets that are bought and sold.
Lawmakers had previously voted to postpone the implementation of a flat-rate 20% tax on crypto-related income exceeding 2.5 million won per year. The controversial crypto tax law, which was enacted at the beginning of the decade, faced opposition in the assembly and was delayed several times.
President Yoon Suk-yeol’s People’s Power Party had promised to further postpone the rollout of the tax if they performed well in the legislative elections, which they did not. The Ministry of Economy and Finance official suggested discussing the possibility of removing the tax and considering crypto as a tax-free financial investment.
Crypto enthusiasts argue that there should be investment parity, pointing out that domestic investment in South Korea has been slow compared to overseas investment and crypto trading. While the previous administration emphasized taxation on all forms of income, the current administration aims to ease pressure on investors to encourage growth.
With the tax set to take effect in six months, experts believe that lawmakers will reach a decision before the end of the current National Assembly session.
