Legislators from South Korea’s opposition party, People Power Party, are pushing back against a law that would have an immediate impact on crypto assets, mostly through the introduction of a tax.
The lawmakers argue that this measure should be deferred by at least a year so that crypto owners may adapt to the pending regulatory changes.
South Korea is looking to levy cryptocurrency gains by 20% for anyone earning $2,100 or more in the country and the law is planned to come into effect on January 1, 2022.
Opponents to the tax argue that it should be introduced no sooner than 2023 and that it should also contain a tiered taxation system as opposed to a flat rate that impacts everyone.
Lawmakers argue that the 20% tax should apply to anyone earning between $42,000 and $251,000 with a 25% tax on profits that are higher than $251,000. The opposition argues that any crypto taxation should be based on South Korea’s financial investment income tax.
The pending tax legislation is important as it may have a widespread impact on the country’s crypto industry moving forward, which has led to contrasting opinions as to how the measure should be introduced.
Previously, South Korea sought to bind crypto exchanges in the country by a clear-cut framework for their operation. However, only 10 out of dozens managed to submit a registration form before the deadline in September.
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