Survey: South Korean Investors Welcome Controversial Crypto Tax Law
A new survey has revealed that a majority of South Korean investors support the proposed crypto tax law set to be unveiled next year.
53.7% Support Crypto Gains Tax
According to a recent survey sponsored by local television station YTN, many South Korean crypto investors support the government’s move to tax crypto gains.
The research carried on 500 respondents aged 18 years upwards by local research firm Realmeter showed that 53.7% of respondents support the proposed taxation regime scheduled to come into effect in Jan. 2022.
38.3% of responders feel it could hamper the sector's growth, saying the move was biased.
The survey showed that respondents within the age bracket of 20 and 29 were strongly against the planned taxation more than any other age group.
47.8% of respondents in their 20s said they do not support crypto taxation, while 47.5% of respondents said it might be necessary to do so.
The data collated also showed that female crypto respondents were more supportive of the taxation scheme than their male counterparts.
Data collated by South Korean statesman Kwon Eun-hee showed that crypto investors in their 20s and early 30s were the most active participants with over 2.35 million confirming that they have traded digital currencies at least once in the top four crypto exchanges operating in the country: Bithumb, Upbit, Korbit, and Coinone.
But despite what may be a growing dissent against Seoul’s plans to regulate the burgeoning industry, Finance Minister Hong Nam-ki believes it's only fair to tax capital gains on crypto transactions the same way other financial transactions are taxed.
But crypto stalwarts have called for a revision of the incoming tax law. The capital gains tax on virtual currency transactions has been pegged at 20% and will only affect trading profits that surpass the 2.5 million (about $2,234) mark.
South Korea’s Growing Regulations On Crypto
South Korea is determined to regulate its crypto sector. The Asian nation has been working steadily to bring the crypto industry under the purview of the government. It started by outlawing privacy tokens like Monero’s XMR.
It then extended its laws to comprise virtual assets service providers (VASPs), including cryptocurrency exchanges stipulating a hefty fine for any crypto company that fails to report suspicious transactions on its platform. It also said that failure to keep relevant customer data and separate management of customers' transaction records would see them facing the full weight of the law.
These laws have since seen crypto exchanges like OKEx and Binance close shop in the country.