After the South Korean government imposed a general capital tax on cryptocurrency holdings last year, a vocal contingent of younger citizens has been protesting the policy. While the government and the opposition are still debating whether to repeal the tax altogether, one prominent member of the conservative party has proposed a compromise that would essentially suspend it for the next two years. (this is the intro for this week’s reading)
South Korea’s Liberty Korea Party is considering postponing the implementation of its cryptocurrency tax as the ruling party is in danger of losing the next elections. The party is trying to regain its lost younger voters by avoiding the tax.
Political parties in South Korea are now vying for the votes of young people, while the highest levels of government are taking a hard line on digital currency. With voters frustrated at the way the parties are handling the issue, one of them stepped forward to talk about the upcoming tax on crypto-currencies.
Democratic Party expectations regarding cryptocurrencies
According to Dailian, members of South Korea’s Democratic Party have indicated that they will not completely abandon the postponement of the crypto currency tax, which would take effect in 2022. The party, which runs the country, thinks a tax on cryptocurrencies is premature.
In addition, Ko Yong Jin, the ruling party’s secretary of the National Assembly’s Strategy and Finance Committee, said they were exploring ways to delay the timeline for introducing new financial regulations for cryptocurrencies. I’ll see if moving is the right thing to do.
On the other hand, Chang Kyung Tae, head of the National Youth Committee of the Democratic Party, said that the most important thing is that virtual currencies are recognized by young people as a scale of wealth by 2030.
In late April, South Korea’s finance minister and deputy prime minister again angered domestic traders by insisting that cryptocurrencies are neither money nor financial assets.
In South Korea, young voters prefer the Democratic Party to the People’s Party, which is the opposition in current politics.
Members of the ruling party have also accused the Democrats of betraying the youth with this cryptic policy. The next presidential election is in 2022.
South Koreans between the ages of 20 and 39 actively seeking to overthrow the FSC leader
The comments came shortly after the head of the Financial Services Commission (FSC), Eun Soon-soo, threw oil on the fire by declaring that cryptocurrencies have no intrinsic value.
As Bitcoin.com News recently reported, such statements have led to a massive wave of online petitions calling for the resignation of the head of the financial regulator.
It is interesting to note that, in line with the young electorate, the two online petitions completed on the government’s website were signed mainly by people aged between 20 and 39.
Earlier this year, the South Korean government enacted a change in the law that would impose a 20 percent tax on profits from transactions involving the buying and selling of cryptocurrencies starting in 2022. However, the rule only applies to cryptocurrency holders with an annual income of more than 2.5 million won ($2,300).
What do you think of the political maneuvers of the Democratic Party of South Korea? Let us know your comments in the section below.
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