South Korea is another country fighting for the votes of crypto investors. The Democratic Party of Korea has agreed to delay the introduction of a cryptocurrency tax for 2 years.
South Korea does not want a tax on cryptocurrencies
The Democratic Party of Korea has withdrawn its actions aimed at introducing a tax on profits obtained on cryptocurrency exchanges in the country. The levy was supposed to come into force in 2025, but it will be introduced only after 2 years. Of course, assuming that this date will not be postponed again.
Everything was announced at a press conference on December 1. The leader of the Korean Democratic Party (KDP), Park Chan-dae, announced that the party has agreed to a two-year moratorium on the implementation of a tax on capital gains obtained from trading in digital assets. The latter is the idea of the government and the People’s Power Party (PPP), the ruling party. However, the votes of KDP MPs were needed to “postpone” the implementation of the levy.
The new tax was to come into force from January 2025, which would mean that investors who sell cryptocurrencies at a profit during next year’s boom will have to pay a levy. The tax will come into force in 2027.
The idea of delaying the introduction of the new levy was proposed by the PPP on July 12. Its politicians have argued that a quick tax on cryptocurrencies is “not advisable”, adding that investors may leave the market if the tax is introduced. The party initially wanted to postpone the deadline for implementing the changes until 2028, fulfilling one of its promises made during the election campaign. KDP strongly opposed this proposal. As you can see, ultimately both groups reached a compromise.
Fighting for votes
There can be no illusions: it’s not about the goodness of the cryptocurrency market. PPP intends to use its “gesture” in future elections, fighting for the votes of BTC investors. It is also possible that lobbyists from the blockchain industry were behind the decision.
KDP also proposed increasing the tax threshold from USD 1,800 to USD 36,000.
This situation shows that cryptocurrencies have become a political topic in another country. When will we see similar movements in Poland? So far, only Sławomir Mentzen from Konfederacja has raised the topic of digital assets in his election pre-campaign. The other candidates have not said a word about bitcoin yet.
You can buy Bitcoin and other cryptocurrencies in a simple and safe way on the zondacrypto exchange.
