Some South Korean lawmakers are opposing the ruling party's plan to impose a 22% tax rate on cryptocurrencies. Originally set to take effect in 2022, the implementation date has now been postponed to January 1, 2027. Opponents argue that the tax proposal raises issues of fairness and equity among investment categories, especially in light of South Korea's previous repeal of income tax on other financial investments like stocks. Critics point out that taxing only cryptocurrency investors is unjust. Several major domestic exchanges have also stated that this tax regime will suppress trading activity and reduce market participation. Interestingly, the proposal cites recent guidance from the U.S. Securities and Exchange Commission, indicating that most cryptocurrencies may not meet the definition of securities. The People Power Party's proposal emphasizes this stance, arguing that cryptocurrencies should not be treated the same as traditional securities. Reportedly, Kim Han-kyu, a senior policy leader of the ruling Democratic Party, stated that the leftist party will discuss the proposal but noted that it has not yet been seriously considered.
