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South Korea’s crypto tax legislation appears to face stiff resistance from the country’s cryptocurrency supporters.
Kim Boo-kyum, who was newly named Prime Minister by South Korean President Moon Jae-in, has stated that he would investigate the country’s crypto tax law.
According to KBS World, the Prime Minister candidate is eager to insure that no one suffers as a result of the crypto tax rule, which goes into force in January 2022.
Kim’s comments come amid growing opposition to the incoming crypto tax regime. Tensions were further stoked after Eun Sung-soo, chairman of South Korea’s Financial Services Commission, argued that cryptocurrencies did not have any intrinsic value.
Eun’s remarks, which have become a familiar refrain among crypto opponents, were made during an appearance before the National Policy Committee earlier this month. The FSC chairman ignored the need for complex crypto controls, saying, “If you start protecting investments that can soar up to 20% per day, more and more will start heading in that direction.”
Crypto proponents reportedly angered 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.”
In response to Eun’s divisive remarks, Prime Minister candidate Kim downplayed the matter, claiming that the FSC chairman was possibly attempting to “cool down the market.”
However, Eun is not the only cryptocurrency opponent in South Korea’s financial regulatory setting. The Bank of Korea’s governor, Lee Ju-yeol, has also attacked cryptocurrencies, branding the recent bull market “abnormal” and dismissing the value of virtual currency in the payments field.
Meanwhile, South Korean authorities have announced intentions to clamp down on illicit cryptocurrency trades, putting bitcoin under tight supervision.
The FSC modified its financial reporting regulations to cover cryptocurrencies in March. Exiting crypto companies now have until September to begin compliance with reporting requirements or face seeing their executives imprisoned.
The country’s tax authority is now cracking down on the use of cryptocurrencies to avoid paying taxes. The City of Seoul recently confiscated approximately $22 million in virtual currency from tax evaders, as previously noted.