"All Dirt Spoon Holders Will Die" Government, What Do You Think About Cryptocurrency Taxation?

Government to classify income from virtual asset transfers or lending as other income from next year
Separate taxation at 20% rate
Taxes collected, but no investor protection plan
"Government, please step back," youth express negative views on government intervention

[Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] "You made coins the only hope, so shouldn't you be apologizing to the youth instead?"

The government’s decision to impose taxes on virtual currencies while refusing to recognize them as financial assets or protect investors has sparked criticism of what some see as a contradictory policy. Among young people, there are claims that the government imposes taxes but shirks its responsibility to protect investors.

Criticism has also emerged suggesting that this policy resembles that of former Minister of Justice Park Sang-ki. In 2018, Park compared cryptocurrencies to speculative gambling and stated, "We are preparing laws aimed at shutting down virtual currency exchanges," which drew backlash from investors who called it an "anti-market policy that kills those from humble backgrounds."

On the 22nd, Eun Sung-soo, Chairman of the Financial Services Commission, attended a plenary session of the National Assembly’s Political Affairs Committee and stated that virtual currencies cannot be recognized as financial assets and that the government has no plans to protect investors. He also mentioned the possibility that around 200 virtual currency exchanges could all be shut down by September.

Earlier in February, the Ministry of Economy and Finance announced that from 2022, income generated from the transfer or lending of virtual assets would be classified as other income and taxed separately at a 20% rate. However, the government also declared it would not recognize cryptocurrencies as assets, leading to criticism that the government’s intervention is solely for tax purposes.

During the session, Chairman Eun defined coins as "unrecognizable virtual assets" in response to questions from lawmakers from both ruling and opposition parties. Regarding concerns about investor losses, he emphasized, "The government cannot protect individuals from losses incurred by their own investments." He added, "I do not think protection is necessary just because many people invest. If people are going down the wrong path, adults need to tell them so."

[Image source=Yonhap News]

Chairman Eun’s remarks have drawn criticism among young people. A petition addressing this issue was posted on the Blue House’s public petition board. On the 22nd, a post titled "We urge the voluntary resignation of Financial Services Commission Chairman Eun Sung-soo" was uploaded.

A petitioner, who introduced themselves as an ordinary office worker in their 30s, said, "I reflected on what I have learned from adults throughout my social life," and criticized, "What I learned from life seniors in their 40s and 50s is exactly hypocrisy."

They stated, "Life seniors in their 40s and 50s rode the wave of rising real estate prices and easily accumulated assets by investing their labor income. They grew their money easily, but now they call it speculation and impose various regulations to prevent those in their 20s and 30s from even having a chance. As a result, no matter how hard we work, we face the reality of not being able to own a single home," raising their voice.

[Image source=Yonhap News]

They continued, "The Financial Services Commission Chairman also increased his assets significantly through real estate. So, are adults allowed to grow their assets through real estate speculation but say that virtual currencies are speculation and should be stopped? Is it acceptable for housing, which is essential for people’s survival, to be a target of speculation, but coins are inappropriate speculation?" they questioned.

They also criticized the government’s plan to not recognize virtual assets but classify them as other income and tax them starting next year.

The petitioner pointed out, "Even gangsters are allowed to keep their territory under the pretext of paying protection money. But investors are told there is no basis for protection, so the government steps back from protecting them, yet demands taxes because money was made." They added, "Seeing the government compare cryptocurrencies to art markets, it seems there is a lack of proper understanding of blockchain and the coin market. This is why our country’s financial system still cannot reach the level of advanced countries," they sharply criticized.

Meanwhile, on the afternoon of the 23rd, the day after Chairman Eun’s remarks, the domestic price of Bitcoin plunged to the 56 million won range. As of 3 p.m. that day, the price of 1 Bitcoin on Bithumb, a domestic virtual currency exchange, was 56,637,000 won. On another exchange, Upbit, Bitcoin was traded at 56,742,000 won per coin.

This content was produced with the assistance of AI translation services.