South Korean opposition lawmaker calls for scrapping cryptocurrency income tax plan
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AT A GLANCE
According to the report, South Korean opposition lawmaker Song Eon-seok has called for scrapping the crypto income tax plan, while the government and the ruling party plan to postpone it until 2029.
Article
South Korean opposition lawmaker calls for scrapping cryptocurrency income tax plan
PANews November 11 reports, citing The Block, that South Korean opposition lawmaker Song Eon-seok argues that South Korea should scrap its cryptocurrency income tax plan rather than delay it by 2 years. Song said taxing crypto asset gains while exempting gains on domestic stocks, coupled with the difficulty of identifying overseas transaction data and the original purchase price of crypto holdings, would cause confusion and burden investors. South Korea had originally planned to impose a January 1, 2027 tax on crypto asset gains starting 22%. But the government and the ruling party announced earlier this month that they planned to postpone the tax until 2029. This would be South Korea's fourth postponement of its crypto taxation plan.
PANews November 11, citing The Block, reports that South Korean opposition lawmaker Song Eon-seok advocates scrapping the cryptocurrency income tax plan rather than delaying it by 2 years.
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Song said taxing crypto asset gains while exempting gains on domestic stocks, as well as the difficulty of identifying overseas transaction data and the original purchase price of crypto holdings, would cause confusion and increase the burden on investors.
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The report noted that South Korea had originally planned, starting January 1, 2027, to impose a 22%tax on crypto asset gains.
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The government and the ruling party announced earlier this month that they planned to postpone the tax until 2029; the report described this as the fourth postponement of the crypto taxation plan.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
There are different positions: the lawmaker wants to cancel the tax, while the government and the ruling party plan to introduce it 2 years later. A call for repeal does not mean the tax has already been repealed, and an announced postponement plan does not mean the postponement has formally taken effect.
Why it matters to readers
This concerns when taxation of crypto asset gains will begin, how the tax rate will be set, and how overseas transaction data and the original purchase price of holdings will be determined. Song cited the burden on investors and enforcement difficulties as reasons for supporting the plan's repeal.
A distinction should be made between canceling the tax and postponing it. The tax on crypto asset gains described in the source should not be mistaken for a tax on the full value of holdings.
Risks and unknowns
The material does not establish that either the repeal or postponement of the tax has been formally approved.
The specific rules for identifying overseas transaction data and determining the original purchase price of holdings were not explained.
The material provides no market reaction data, so the impact of the news on crypto asset prices cannot be determined.
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Related concepts
Crypto asset gains
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