Thanks to the advancements of the Democratic Party of Korea against the South Korea Finance Division’s intentions to implement an encompassing taxation regulatory structure on cryptos, the country’s digital asset policy has purportedly been delayed.
While the Democratic Party intends to delay the tax law implementation to 2023, South Korea’s Minister of Finance and Strategy, Hong Nam-Ki, vows to do his best to ensure that the contentious tax code will come into effect as early as January 1, 2022.
Although the initial delay on the crypto tax law implementation could be seen as a massive win for the opposition, they are admittedly still facing a steep uphill battle. This is primarily due to Hong’s tremendous political power. Notably, Hong was a former South Korean prime minister and was personally handpicked by the current President to sit as his administration’s finance minister.
Nevertheless, the Democratic Party seems determined to give it everything they have just to delay the implementation further and for the country to have a longer time to evaluate or reassess the proposed crypto tax ruling. According to the reports, the Democratic Party is looking to bring up the issue to the country’s highest governing body, the National Assembly, in an attempt to settle it in its favor.
The controversial tax code aims to levy a 20% tax on all profits generated through crypto transactions that exceed 2.5 million Korean won, or approximately $2,100.