South Koreans Support The Introduction Of Crypto Taxes

A recent survey in South Korea shows that the majority of South Koreans support the introduction of cryptocurrency taxes however, it is thought that the minority who oppose the proposition will hold important political cards. 

According to Korean newspaper the Hankookilbo, the survey found that just over 33% of those who were surveyed opposed the introduction of crypto taxes with 55% stating that they want the government to start taxing crypto traders and investors. The remaining number were unsure or undecided on the matter. 

Crypto tax in South Korea was due to be introduced in October this year, however, this has now been pushed back until January 1, 2022. The decision to push back the taxes was made after domestic exchanges complained that they needed more time to prepare for the new tax laws, which require a large amount of data from the exchanges to be submitted to Nationwide tax Agencies. 

Related: South Korea Cracks Down On Crypto In A Regulatory Overhaul

The survey took place between September 17 and September 18, by the Korea Social Opinion Research Institute (KSOI), which spoke to over 1000 adults from the country. The KSOI did note that younger respondents were more likely to oppose the new tax laws. These younger voters represent a large bulk of support for the ruling Democratic Party in South Korea and have become very enthusiastic about crypto over the last few years. 

The topic of crypto tax has been widely spoken about among the South Korean Crypto Community. The community blame the government for pricing them out of the real estate market with what they have called counterproductive attempts to lower housing prices.

On top of this, a barren jobs market and sluggish share prices have left many of the ruling president’s supporters unhappy with the government. The proposed crypto taxes have not helped its cause among the younger supporters. 

Related: South Korea suspends dozens of exchanges pending Financial Intelligence Unit registration

Mira Kim, a South Korean based blockchain consultant stated, “A lot of people really seem to think that it’s not fair, that the bar has been set too high. Stock traders, for example, are allowed to offset their tax payments for up to five years [depending on the size of their trading profits], but it doesn’t look like that will be an option for crypto traders.”

South Korea will head to the polls in March next year and opposition to the current government have already started to use the issue to their advantage, accusing the current government of “betraying” young crypto-keen investors and urging a u-turn. 

Despite the anger, the government has stated that it has no intentions of backing down however, a crypto task force created by senior Democratic lawmakers has said that it will seek “discussion” on the matter. A number of MPs on both sides of the fence have launched bids to delay the new measure until 2023 at the earliest.