The South Korean government has experienced increasing opposition to the 20% tax proposal on income earned through trading. Earlier this year, the government notified its traders of its plan to levy taxes on crypto trading. The proposed levy, which has the goal of normalizing tax has not been effected yet but may take effect starting from 2022.
This recent modification has not gone down well with a lot of citizens in South Korea, especially the crypto traders. For some three months now, a lot of crypto investors and traders have appealed for the government to review its proposal. The citizens expect that tax deductions should be made on earnings.
Petitions Against the Tax Levy
Since the shocking announcement was made this year, three petitions have been filed against the implementation of the tax. The most recent petition called for the stepping down of Eun Sung-soo, the Chairman of the South Korean FSC. Eun Sung-soo recently found himself on the wrong side of Crypto advocates. Eun described cryptocurrency as a “crypto-asset with no intrinsic value”.
This triggered intense opposition from the crypto users in South Korea. In the latest petition in which the author remained anonymous, he accused the South Korean government of having double standards. The author also went further to state that “the South Korean government limit opportunities for the newer generations, while the older generations keep expanding their wealth with ease”.
Crypto Regulation Intensified
Following the remarks made by the FSC Chairman, the government of South Korea made it known that it will intensify its efforts to bring a halt to fraudulent activities involving the use of cryptocurrencies. This includes fraudulent investment schemes and scams.
At the moment, virtual asset service providers are obliged to verify the identity of their customers and report any suspected fraudulent activity to the anti-money laundering department. Regulators are closely monitoring crypto remittances on local exchanges as well as foreign exchanges.