South Korea’s finance minister nominee Choo Kyung-ho said Monday that priority should be given to establishing a regulatory framework for virtual assets before imposing tax.
According to Choo, also the current deputy floor leader of People Power Party, the numerous unresolved issues surrounding virtual assets, such as securing transparency and safety during transactions, and ensuring investor and customer protection, should be addressed before imposing income tax.
“I believe establishing laws related to virtual assets are more urgent and levying tax on them should follow after a regulatory framework is prepared,” Choo said during a parliamentary confirmation hearing.
The country’s crypto tax is set to take effect on Jan. 1, 2023 after having been delayed twice due to a lack of infrastructure surrounding crypto regulation. Under the current Income Tax law, profits from crypto transactions exceeding KRW 2.5 million (US$2,100) would be subject to a 22% levy.
In March, the transition committee of president-elect Yoon Suk-yeol, whose term will begin on May 10, said it was looking into delaying the crypto tax due to similar reasons, but has not confirmed any progress.