South Korea’s People Power Party has prepared a new challenge to the proposed crypto tax law.
According to The Korea Herald opposition lawmakers want a one year extension for crypto taxation to begin in the country.
Cointelegraph reported that South Korea’s crypto tax system will see a 20% levy on cryptocurrency gains exceeding 2.5 million Korean won ($2,100). It will be in effect from 2022.
The lawmakers also want a tiered tax levied for crypto, similar to the Financial Investment Income Tax system that will be in place in 2023.
The legislative proposal proposes that instead of the 20% flat rate the government charges on profits over $2,100, lawmakers suggest 20% on gains between 50-300 million won (from $42,000 to $251,000) or 25% on profits above 300million won.
Cho Myoung-hee commented on the need for crypto investors to be less burdened and suggested that cryptocurrencies should have a tax regime in line with the country’s financial investment income tax.
Related: South Korean lawmaker says delaying tax laws regarding crypto is “inevitable”.
Following a similar action taken by members of the Democratic Party in September, the People Power Party has now challenged the crypto tax bill.
According to reports, any attempts to delay the implementation of the crypto tax law were stopped by an agreement between the legislators and the Finance Minister.
The crypto tax regime in South Korea is one of many recent regulations that the government has enacted. This could have a significant impact on the country’s future cryptocurrency market.
With several smaller platforms having to close down, South Korean crypto exchanges were forced to license themselves in September.