South Korea’s Crypto Tax U-Shift Looks Unlikely, Despite The Clamor

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Source: iStock / paisan191

Despite the recent outrage over crypto tax among younger South Koreans, a new small poll found that the majority of respondents are in favor of taxing the profits of crypto traders.

According to Segye Ilbo and Chosun, the survey interviewed 500 people over the age of 18 across the country and was commissioned by the media network YTN and made by Real Meter .

And almost one in six respondents said they were in favor of the introduction of taxes, in line with the government’s plans. A new cryptocurrency tax law is expected to take effect on January 1 of next year. Less than 40% said they disagreed, with only 8% undecided about it.

And there seemed to be a sharp gender divide on the issue. Despite a small army of South Korean crypto moms rushing into the crypto market, about 60% of those surveyed said they supported the taxes. Forty-year-old respondents were the demographic most in favor of fiscal measures, with more than 62% backing the bill.

The move has proven to be so decisive that it has put the government on a twist, with some high-level lawmakers saying there is no going back on tax plans, leaving higher-earning crypto traders forced to pay bills. 20% capital gains tax on your earnings. But other figures in the ruling Democratic Party fear that a massive rise in online anger from the “2030” demographic (20 to 39 year olds) will turn against the party at the polls in next March’s general election.

Some Democratic lawmakers have suggested conciliatory action and have even spoken vaguely about the possibility of delaying or amending the bill before it is enacted. Meanwhile, the main opposition party has launched a “crypto task force” and rebuked the Democratic Party for “betraying” young citizens interested in encryption.

But the survey seemed to show that not all 20-year-olds are pinning their hopes on crypto riches: While 48% of respondents in their twenties said they wanted the tax plans removed, 47.5% said they liked the idea. of crypto taxes, with less than 5% claiming they are not sure.

Meanwhile, a South Korean lawyer discussed the possibilities of a legal U-turn in the crypto tax law plans in a column for Sisa Journal, Lee Kyung-geun, an advisor to the law firm. Yulchon and vice president of the Financial Tax Forum . He noted that some ruling party officials have talked about the possibility of deferring the new tax measures.

Lee wrote that politicians are likely to stick to the line that “wherever there is a source of income, it should be taxed,” and opined that to ensure “the strong development of the South Korean cryptocurrency market,” a framework of “laws and systems were needed” as well as “legal mechanisms to prevent excessive speculation” on crypto trading platforms.
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