Virtual Currency Taxation Policy Debate Held... Ruling and Opposition Parties Reaffirm Tax Deferral Positions

"If the Tax System Is Not Properly Established, Side Effects Such as Tax Resistance and Tax Evasion May Occur"

The Korea Blockchain Association announced on the 11th that it held a forum on "Rational Taxation Measures for Digital Assets" at the Conrad Hotel in Yeouido, Seoul. (Provided by Korea Blockchain Association)

[Asia Economy Reporter Gong Byung-sun] The ruling and opposition parties have come together to reaffirm their direction to postpone taxation on virtual currencies. This is due to concerns that imposing taxes hastily without a proper taxation system could lead to side effects such as tax resistance and tax evasion.

On the 11th, the Korea Blockchain Association announced that it held a forum on "Rational Taxation Measures for Digital Assets" at the Conrad Hotel in Yeouido, Seoul. The forum was attended by key lawmakers from both parties, including Kim Byung-wook of the Democratic Party and Yoon Chang-hyun of the People Power Party, as well as Song In-kyu, adjunct professor at Korea University, Lee Dong-geon, professor at Hanbat National University, Kim Tae-hee, chief lawyer at Pyeongsan Law Firm, Hwang Se-woon, research fellow at the Capital Market Research Institute, and Kim Tae-kyung, vice chairman of the Association's Taxation Committee.

At the forum, lawmakers from both parties agreed on the need to postpone taxation on virtual currencies. Kim Young-jin of the Democratic Party said, "Pushing forward with taxation without proper preparation could lead to taxpayers' tax resistance or evasion," adding, "Thorough supplementation and reorganization are necessary." Yoo Kyung-joon of the People Power Party also emphasized, "It is unacceptable to impose taxes recklessly when the government fails to fulfill its basic responsibility and duty to protect the people's property and lives."

During the discussion chaired by Oh Moon-sung, president of the Korean Tax Policy Association, Professor Lee Dong-geon explained, "Given the rapid development of the virtual currency industry, new types of virtual currencies continue to emerge, but the related laws simply list and define the types of virtual currencies. It is desirable to first present clear principles regarding virtual currencies and establish a system that allows taxpayers to determine whether they are subject to taxation."

Research fellow Hwang Se-woon stated, "The principle is to tax where income exists," but emphasized, "However, since the taxation system is not yet properly established, I believe about one year is needed to build the system."

On the same day, Oh Gap-soo, president of the Korea Blockchain Association, said in his welcoming remarks, "With the enforcement of the amendment to the Act on Reporting and Using Specified Financial Transaction Information, the domestic blockchain industry and virtual currency market have taken their first step into the institutional framework," adding, "The direction of virtual currency taxation will play an important role in the development of the blockchain industry, the virtual currency market, and the transformation into a competitive digital economy."

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