[Blockchain Today Reporter Jihye Han] The People Power Party plans to put a plan to defer taxation on virtual assets as a general election pledge.
On the 19th, Herald Economy exclusively reported that the People Power Party plans to present as a general election pledge a plan to extend the implementation of virtual asset taxation, which was once postponed to January 2025, for at least two more years.
According to reports, the People Power Party's position is that taxation should be done after establishing a tax base for virtual assets in the 22nd National Assembly in line with the principle of 'taxation after selection fee'. The 22nd National Assembly plans to propose the second stage of the 'Virtual Asset User Protection Act' and discuss the following: defining a deposit management business, legally introducing a listing system, and establishing a virtual asset stock exchange.
The Virtual Asset User Protection Act was enacted in July of last year and is scheduled to go into effect on July 19 of this year. The bill largely stipulates ① protecting the assets of virtual asset users, ② prohibiting unfair trading practices in the virtual asset market, and ③ the financial authorities' supervisory and sanctioning authority for the virtual asset market and business operators, etc., and enforcing the Enforcement Decree of the Virtual Asset User Protection Act and supervision of the virtual asset industry. A draft regulation was prepared and a preliminary notice of legislation was held from December 11 of last year to January 22 of last year.
However, it was pointed out that the bill only focused on protecting investors and punishing damages. Financial authorities announced the legislative notice for the Virtual Asset User Protection Act and expressed their opinion, saying, "It is virtually impossible for a virtual asset business to engage in a deposit and management business in which a virtual asset business entrusts a third party to manage the user's virtual assets."
However, contrary to the authorities' intention, there is an opinion that handing over some rights of the staking service to a consignment company to operate the staking service in some domestic exchanges may run counter to the content that 'user assets should not be entrusted to a third party'. Came from the industry.
Among domestic exchanges, Upbit, Bithumb, Coinone, and Korbit are operating staking services, but Upbit is the only one that directly operates the entire staking process, including directly operating nodes.
Bithumb entrusts activities such as block verification to a consignment company for all items that support staking within the exchange. Coinone and Korbit operate staking services directly for some items and outsource other items to consignment companies.
A People Power Party leadership official said, “Taxation is something the country should do to protect its people’s property and lives,” and added, “However, the tax base has not been established right now. He pointed out, “There is no place that tries to oversee transactions like the stock exchange, and there are cases of handing over proof of income to virtual asset companies.”
He added, “It will be a general election pledge aimed at 2030,” and added, “I think there is a need for at least a two-year delay until the amendment is passed and such a system is actually built.”
It is also reported that plans to adjust the tax base are being considered. It is analyzed that the current tax exemption for stocks is 50 million won, while the tax exemption for virtual assets is 2.5 million won, which is due to criticism of 'discriminatory taxation'.
Meanwhile, it is reported that abolition of virtual asset taxation is not being considered.
hjh@blockchaintoday.co.kr
