As politicians work hard to reach an agreement with senior government officials to relax the ruling, South Korea’s cryptocurrency regulatory crisis is adding fuel to the fire. A local media revealed that after several meetings in the past few days, South Korean ministries are “unwilling” to be responsible for the country’s digital asset supervision.
The Prime Minister participated in the “Cryptocurrency Summit”
According to SBS, as part of the “cryptocurrency summit,” lawmakers held some meetings in the Prime Minister’s office at Kim Bo Chu last weekend to resolve regulatory issues.
The media quoted an unnamed government official as saying that the talks with the ruling Democratic Party leaders Song Yongji, Liu Yongmin, Blue House Office Secretary, and Prime Minister Kim Sang did not have an optimistic conclusion:
Most ministries are unwilling to take responsibility for this issue. Only after clarifying the responsibilities of the various ministries, the solution will appear.
Participants at the meeting discussed the virtual currency bill proposed by the National Assembly, including the upcoming crypto tax that will take effect in 2022. SBS emphasized that ten government agencies and government departments have a certain relationship with cryptocurrency-related topics.
In South Korea, cryptocurrency is still a “virtual asset” with no financial value
However, the government is still reluctant to grant cryptocurrency the term “virtual currency” instead of naming it “virtual assets” all the time, which means that such assets cannot be regarded as “financial assets.”
The Democratic Party in North Korea has been considering delaying cryptocurrency taxes as the general election approaches. From the perspective of digital asset adoption, the number of young voters is increasing, but they are leaning toward the Democratic Party.
Nevertheless, the government seems to be seeking an agenda to apply taxation to crypto-related activities. As Bitcoin.com News reported in early May, officials from the South Korean Ministry of Strategy and Finance will impose new rules on virtual currency miners with annual revenues of more than $2,220, imposing a 20% tax rate.
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