People Power Party

The People Power Party, which is in power in South Korea, is considering postponing adopting cryptocurrency investment gains taxation later, this time to 2027. People think this planned move has much to do with the party’s upcoming campaign for the April general election.

People Power Party Shifts Focus to Crypto Tax Regulation

This move from the original plan, the party is putting more emphasis on creating a basic regulatory framework for cryptocurrencies than speeding up the adoption of taxation. The suggested rules cover essential parts of the crypto industry, mainly crypto custody providers and token listing requirements.

These suggested rules are meant to go along with South Korea’s current crypto rules, which will start to apply in July. The move to push back the start of the cryptocurrency gains tax, initially set for January 2023 and rescheduled for January 2025, shows that the party is serious about carefully setting up the regulatory environment before imposing taxes. By the end of the month, the party should have finalized its main election promises.

A Ministry of Economy and Finance representative suggested last month that the legislative body might discuss removing the income tax on crypto assets. This aligns with the administration’s larger plan to eliminate taxes on stocks, funds, and other types of investments. But the People Power Party isn’t saying to consider getting rid of all Bitcoin taxes.

The party also wants to make the tax threshold for cryptocurrencies the same as for stocks. They are doing this to support a more fair tax system. As things stand, bitcoin gains over 2.5 million Korean won ($1,875) are taxed at 22%. On the other hand, stock gains are only taxed over 50 million won.

South Korea announced last December that high-ranking government officials would have to reveal what cryptocurrencies they owned starting the next year. This strategy aims to keep government officials honest and reduce the chance of them having conflicts of interest.

Alongside these efforts in South Korea, Lee Bok-hyun, who oversees the country’s finances, plans to discuss the crypto business with Gary Gensler, the U.S. Securities and Exchange Commission chairman. The discussions will mostly be about spot Bitcoin ETFs, which shows how global South Korea’s method of regulating cryptocurrencies is.