Key Takeaways
- South Korea ruling party delays passing new crypto tax bill
- A top official of the Democratic Party cited the problems of enforcing the bill as a major reason for the decision
- Korea is one of the few countries in the world with proper crypto regulatory laws
Local news outlets stated that the Democratic Party of South Korea reportedly objects to some aspects of the regulations.
The bill is expected to tax companies and individuals 20% of their profits and has been criticized by the local crypto community.
However, the ruling Democratic Party has voted to suspend the bill citing insufficient preparation by regulatory agencies.
According to Noh Woong-rae a top-ranking official in the Democratic Party, introducing the crypto bill in its current format will be ineffective.
Woong-rae added that it would be difficult for financial regulators to properly conduct oversight on foreign exchanges and p2p platforms that offer services to Korean citizens.
This step by the ruling party throws uncertainty to the current state of crypto regulations in Korea.
The Asian nation is one of the few countries that have an existing crypto bill that regulates the activities of crypto companies.
However, the bill has come under scrutiny as the popularity of cryptocurrencies has increased in recent years.
This led to the Finance Ministry researching and releasing a draft proposal for a new taxation law set to come into effect in Q1 2022.
A recent survey taken in Korea revealed that more than half of the respondents support the new tax bill.
However, this is unlikely to happen with the latest developments. Korea’s battle with crypto regulations is a recurring trend that has been recorded globally.
The unique nature of cryptocurrencies has made it difficult for regulators globally to propose effective laws.
While some countries like Ukraine have looked to develop crypto-friendly laws, others like Nigeria have outrightly banned cryptocurrencies.
What are your thoughts on South Korea delaying the crypto tax bill?
