A South Korean citizen posted a petition on the official website of the National Assembly, the country’s legislative body, asking the South Korean government to postpone the taxation of cryptocurrency gains.
If the petition, submitted March 21, reaches 50,000 signatories by April 20, local lawmakers will be required to revisit the topic. It currently has 10,888 signatures as of Tuesday afternoon in Asia.
“There are fears of a large-scale exodus of crypto investors to foreign exchanges if the country starts taxing investors while not fully prepared,” the petition states. “Please postpone it for two years, thoroughly examine the expected issues, and discuss taxation later.”
THE country crypto gains tax The tax plan is currently scheduled to take effect in January 2025, having been pushed back from the original date of January 1, 2023. Another two-year delay would delay the start of the tax plan until 2027.
The petition also called for increased oversight of the Digital Asset Exchange Alliance (DAXA), an advisory group made up of South Korea’s five major exchanges. DAXA often leads the five exchanges to take concerted action to delist certain cryptocurrencies. “DAXA’s criteria for judging whether to support or terminate transactions is unclear, and there is room for arbitrary judgment,” the petition states.
Crypto fever in Korea
South Korea is home to one of the largest and fastest growing cryptocurrency markets in the world. Upbit, the country’s most popular exchange that holds the majority of local market share, has processed a trading volume of $185 billion in March so far, according to data from the block. This represents almost 9% of the total volume of trade in the world.
Local crypto fever has gained strength in recent months with the bull market cycle. According to the locals reportsSouth Korean stock exchanges recorded a trading volume of 11.85 trillion Korean won ($8.8 billion) on March 11, surpassing the trading volume on South Korea’s KOSPI stock market.
Disclaimer: The Block is an independent media outlet providing news, research and data. Since November 2023, Foresight Ventures has been a majority investor in The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to provide objective, impactful and current information about the crypto industry. Here is our current financial information.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.