People Power Party aim to align crypto tax thresholds with stocks while mandating public officials to disclose holdings.
The People Power Party, which currently holds power in South Korea, favors delaying the taxation of gains from cryptocurrency investments for two years.
The action is regarded as a possible campaign pledge in anticipation of the April general election.
Before instituting taxation measures, the party intends to establish a comprehensive regulatory framework for cryptocurrencies.
The right-wing party, as reported by the Herald Business Daily, has expressed its intention to introduce a fresh set of regulations about the cryptocurrency sector during the forthcoming term.
The party’s objective is to postpone the January 2025 implementation of the crypto gains tax by initially placing greater emphasis on regulatory measures.
This proposed postponement would result in the tax scheme commencing in 2027.
In pursuit of electoral success, the People Power Party is contemplating the introduction of a measure comprising fundamental components that could serve as regulations for cryptocurrencies.
People Power Party’s Initiative for Ethical Cryptocurrency Practices
Guidelines for token listing and requirements for crypto custody providers may be included in these regulations.
These regulations, if enacted, would supplement the preliminary crypto rules that are scheduled to go into effect in South Korea in July.
By the end of the month, the People Power Party intends to finalize its fundamental election promises.
A representative from the Ministry of Economy and Finance of South Korea recently proposed that the nation’s legislative body deliberate on the potential elimination of income tax on cryptocurrency assets.
This recommendation is consistent with the stance taken by the present administration to eliminate the proposed tax on financial investments, such as funds and equities.
As Herald reports, the People Power Party does not appear to investigate the possibility of a total elimination of the cryptocurrency taxation that has been proposed.
In addition to supporting a tax deferral, the party’s objective is to achieve parity between the cryptocurrency tax threshold and that of stocks.
Currently, cryptocurrency gains exceeding 2.5 million Korean won (approximately $1,875) are subject to a 22% tax rate under the tax plan.
Stock gains, on the other hand, are subject to taxation only after they exceed 50 million won.
South Korea made an announcement in December of last year mandating that beginning next year, high-ranking public officials must disclose their cryptocurrency holdings.
The personnel ministry of the country stated at the time that this proactive approach was meant to promote integrity in the public sector and resolve potential conflicts of interest.
The government’s objective in requiring public officials to disclose their cryptocurrency holdings is to uphold the utmost ethical principles and prevent any possible conflicts from their participation in the cryptocurrency market.
This stipulation would apply to high-ranking officials in every department and agency of the government.
These authorities must disclose their cryptocurrency holdings, including the specific assets and corresponding values.
Lee Bok-hyun, the director of the Financial Supervisory Service of South Korea, plans to meet with Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), later this year to discuss the cryptocurrency industry.
In particular, the official intends to consult with Gensler concerning spot Bitcoin ETFs.