Opposers to Crypto Taxation Plans Gain Traction in South Korea

Opposers to Crypto Taxation Plans Gain Traction in South Korea

The South Korean government is noticing increasing discontent over plans to levy cryptocurrency traders come next year.

A proposal to hive off 20% as tax is not sitting well as interest groups pile pressure by filing petitions against the plan.

The Blue House is already in receipt of 3 petitions, with the latest filing within the week calling for the FSC chair to step down. 

Eun Sung-soo is under fire after remarks he made on Thursday, referring to a crypto asset with no intrinsic value. Further, he praises the safety of investments in arts against digital assets.

His remarks face fierce oppositions. According to an anonymous petitioner of the third petition, the authorities are applying “double standards.”  It’s projecting a limitation on younger generations, whilst them – the older generations have had a great share building wealth with conventional means like real estates.

Abolishing Financial Criminals

Eun’s remarks came after the government address on Monday, indicating eradication actors of financial crimes, citing specifics as those on digital assets and their respective investment fraudsters.

To actualize the regulations, the government in Seoul now holds digital assets belonging to a record 676 traders and raises accusations of tax evasion. 

According to reports, the accused traders collectively owe the government overdue amounts of approximately $ 25 Million. Collectively they owe the government around $25 million in outstanding payments. More so, the accused parties fall within 1,556 firms holding crypto-assets within three exchanges in Seoul. Next year, the slap will require all crypto exchanges to provide records of transactions for audit.

Currently, practice under anti-money laundering regulations in South Korea requires customer verifications and reporting of unusual transactions, among several other requirements. 

The amendments took effect last month. Yet regulators sentiments lean towards a broader scope. The wide spectrum targets more nuanced scrutiny relating to the price variations between overseas and local Bitcoin exchanges.

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