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South Korean Prime Minister nominee will look into crypto tax law coming into effect next year. - Chaintimes.com


chaintimes.com 26 April 2021 08:43, UTC
Reading time: ~2 m

Kim Boo-kyum, recently nominated as Prime Minister by South Korean President Moon Jae-in, has said he will look into the country’s crypto tax law. According to a report by KBS World, the Prime Minister nominee is keen to ensure that there are no victims of the crypto tax law coming into effect in January 2022. Kim’s comments come amid growing opposition to the incoming crypto tax regime. Tensions were further stoked after the chairman of South Korea’s Financial Services Commission argued that cryptocurrencies did not have any intrinsic value.

The FSC chairman dismissed the need for nuanced crypto regulations.

Eun’s comments, a common refrain among crypto critics, came during an appearance before the National Policy Committee earlier in April. The FSC chairman dismissed the need for nuanced crypto regulations, adding, “If you start protecting investments that have the ability to soar up to 20% a day, more and more will start heading in that direction.” Crypto proponents, reportedly provoked by Eun’s remarks, submitted a petition to South Korea’s Blue House calling for the removal of the FSC chairman. This, the third such petition concerning crypto regulations in the last few months, accused the financial regulatory chief of “double standards.”

Bank of Korea’s governor has also criticized crypto. 

Eun is not the only crypto critic in South Korea’s financial regulatory space. Lee Ju-yeol, governor of the Bank of Korea, has also criticized cryptocurrencies, calling the current bull market “abnormal” while rejecting the utility of virtual currencies in the payments arena. Meanwhile, crypto continues to come under strict control measures in South Korea, with regulators announcing plans to crack down on illegal cryptocurrency transactions. Earlier this year, the FSC amended its financial reporting rules to include cryptocurrencies. Exiting crypto businesses now have until September to begin complying with reporting standards or risk harsh penalties including jail time. 

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