Political parties in South Korea are taking initiatives which are rather political moves to seek voting support from the majority in the coming elections for the country’s President that are due to take place in 2022. Members of the ruling party have said that they are considering the possibility of postponing the implementation of proposed crypto regulations, which are to be employed at the start of 2022. Yet the voters are unconvinced, as they are not happy with the political parties because they are using crypto for their political motives.
There are two major political parties in South Korea namely Democratic Party and the People’s Power Party. Currently, a President who is from the Democratic Party is running the country. While the People’s Power Party has been playing a role of the Government’s Opposition. The next Presidential Elections are due to take place in the year 2022. In addition, recently the South Korean Government has approved a tax law concerning crypto earnings. As per the law, the relevant taxation authority will tax any earnings earned from digital asset trading in the country accordingly.
However, the Government’s initiative failed to attract majority support as they found the proposed regulation unnecessary and uncalled for.
However, both parties have already begun their elections campaign and both are using proposed crypto regulation for their political motives. It was said by the opposition party that when they will come in power, they would ensure that the crypto is being properly taxed. On the other hand, it has been suggested by many members of the ruling party that the proposed regulation may be postponed. The issue of taxing crypto has transformed from a public policy into a political motive.
The intention behind the postponement of the law is assumed to be for ensuring massive voting support. Both parties are well aware that the vast majority of crypto traders are made up of youth. However, the minority is also not less, which is only a few numbers short to make up 50:50 ratio. However, there is a majority consensus that the proposed crypto tax regulation should not be implemented in a few years’ time.
It was spoken by several members from the Democratic Party that they have not ignored the possibility of postponing the law. The ruling party’s Secretary, Koh Yong Jin, suggested recently that he would not mind considering the possibility of delaying the implementation of the law.
However, a week ago, the South Korean Finance Minister suggested that it is unwise to consider crypto products as tangible assets. There is quite an uncertainty amongst the country’s youth as they are unable to determine the genuine intent of the Government.
Meanwhile, the Government has confirmed that there is a possibility of postponement but did not deny its implementation at any belated stage.