Ahn Cheol-soo "Opposes Virtual Currency Transfer Tax... Taxation Without Protection Is Exploitation"

Ahn Cheol-soo, leader of the People’s Party, is attending the Supreme Council meeting held at the National Assembly on the 13th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kum Boryeong] Ahn Cheol-soo, leader of the People’s Party, voiced opposition to the imposition of capital gains tax on virtual currencies. At the same time, he called on the government to establish a management and supervision system for virtual currency exchanges.

At the People’s Party Supreme Council meeting held at the National Assembly on the 13th, Ahn said, "I oppose the imposition of capital gains tax on virtual currencies in the current situation," adding, "Taxation without protection is exploitation."

Ahn emphasized, "If the government intends to levy taxes, it should first improve transaction transparency and establish investor protection measures, provide sufficient prior notice, and then impose only transaction taxes like those on stocks. Even if capital gains tax is to be imposed, the government should consider taxing only high profits above a certain amount by referring to the stock capital gains tax standards."

He added, "That should also be postponed beyond 2023, when personal investors’ stock capital gains tax is scheduled to be implemented," explaining, "Because the maturity of the virtual currency market is much lower than that of the stock market relative to its size."

Ahn argued that the Blue House and financial authorities need a management and supervision system for virtual currency exchanges. He said it is necessary to specify qualifications and requirements for operating exchanges, implement a licensing system for exchanges, and enact laws that stipulate investor protection obligations for exchanges.

He pointed out, "Whether the government acknowledges it or not, the virtual currency market exists and is growing. The government’s role is to recognize its reality now, protect investors through appropriate management and supervision functions, enhance transparency, and foster its legalization."

Ahn recalled the early 2000s KOSDAQ crisis while observing the overheating of the virtual currency market and the government’s neglect of supervisory responsibilities. He said, "The government, struggling to overcome the IMF foreign exchange crisis, allowed the credit card crisis and encouraged the KOSDAQ bubble. Countless investors shed tears of blood. Who can guarantee that such a thing will not happen now in the virtual currency market?"

He also said, "The current attitude and response of the government and ruling party toward the virtual currency market is a clear dereliction of duty," and added, "I hope they correct the wrong policies even now and focus on urgent and important matters for the people rather than what the government and ruling party want to do."

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