On the 28th, at a meeting called “Digital Asset Tax Cooperation Meeting” held in the National Assembly, Democratic Party Representative Kim Min-seok urged that the current state of preparation for the digital asset tax scheduled to take effect in January next year be reexamined. The tax is likely to cause confusion and uncertainty if it is applied in a situation where the legal basis has not yet been established amid rapid changes in the digital asset market, and he emphasized that realistic judgment rather than philosophical approach is required.
Representative Kim noted that implementing a tax that does not adequately reflect the characteristics of the digital asset market and its trading environment is “unreasonable,” and stated that since the Basic Digital Asset Act has not yet been enacted, concerns such as lack of infrastructure and issues of fairness for overseas exchange users must be addressed. He said: “If the tax is implemented next year, we need a detailed review to determine whether it will be workable and how it should be managed.”
Chairman Jo Seung-rae of the National Assembly’s Economic Planning Committee said that the preparation status for the tax needs further confirmation, and stated: “While the digital asset market will change significantly during the implementation, we need to examine whether the existing tax system can function properly.” He added that if the tax is introduced, both government and the National Assembly should reexamine their preparations.
Deputy Prime Minister Lee Hyung-il, head of the Ministry of Economy and Finance, emphasized that industry and experts need to reflect the market environment after the tax system was established at end of 2020, and said: “The government has developed a reasonable plan for implementing the policy in a way that citizens can accept and it will be stable.” This indicates that reexamination of the policy direction and preparation status for digital asset tax is urgently required.