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Korean Lawmaker Advocates for Cryptocurrency Tax Implementation in 2025 Jin Seong-jun Urges Timely Cryptocurrency Taxation Jin Seong-jun, Chairman of the Democratic Party Policy Committee in South Korea, has strongly advocated for the implementation of a cryptocurrency tax starting in 2025. Speaking on a radio program, Jin clarified his stance, emphasizing that cryptocurrency taxation should not be compared to financial investment income tax, as digital assets are not directly tied to the real economy. His remarks come as South Korea continues to grapple with balancing investor interests and government revenue needs amid growing crypto adoption.   Key Points from Jin Seong-jun’s Proposal 1. Legal Stability and Predictability Jin underscored the importance of adhering to the principle of taxation, where all income—including cryptocurrency earnings—should be taxed to promote financial stability. He argued that delaying the tax further would undermine legal stability and predictability for both investors and the government. Taxation on cryptocurrency transactions has been in discussion for years, and Jin sees no reason for further delays. 2. Differentiation from Financial Investment Income Tax Unlike financial instruments tied to the real economy, Jin contended that cryptocurrencies operate in a separate domain, necessitating a distinct tax framework.   Proposed Solutions for Cryptocurrency Taxation 1. Domestic Transactions Jin suggested that domestic cryptocurrency transactions could be taxed immediately since they can be monitored effectively through local exchanges. Existing infrastructure and regulations provide sufficient oversight for taxation within South Korea. 2. Overseas Transactions Monitoring cryptocurrency transactions on overseas exchanges remains a challenge. Jin proposed taxing these transactions starting in 2027, once systems capable of tracking global exchanges are established.   Raising the Tax Exemption Limit To address concerns among investors, the Democratic Party plans to propose raising the cryptocurrency tax exemption limit: Current Limit: 2.5 million won ($1,790). Proposed Limit: 50 million won ($35,700). The revised…

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Filed under: News - @ November 22, 2024 11:23 am