South Korean Prime Minister nominee to look into controversial crypto tax law

South Korean Prime Minister nominee to look into controversial crypto tax law

Kim Boo-kyum, recently nominated as Prime Minister by South Korea’s President Moon Jae-in, has said he will look into the country’s crypto tax law.

According to a report by KBS World, the Prime Minister nominee is keen to ensure that there are no victims of the crypto tax law coming into effect in January 2022.

Kim’s comments come amid growing opposition to the incoming crypto tax regime. Tensions were further stoked after Eun Sung-soo, chairman of South Korea’s Financial Services Commission, argued that cryptocurrencies did not have any intrinsic value.

Eun’s comments, a common refrain among crypto critics, came during an appearance before the National Policy Committee earlier in April. The FSC chairman dismissed the need for nuanced crypto regulations, adding “If you start protecting investments that have the ability to soar up to 20% a day, more and more will start heading in that direction.”

Crypto proponents reportedly angered by Eun’s remarks submitted a petition to South Korea’s Blue House calling for the removal of the FSC chairman. This, the third such petition concerning crypto regulations in the last few months, accused the financial regulatory chief of “double standards.”

Commenting on Eun’s controversial remarks, Prime Minister nominee Kim downplayed the matter, stating that the FSC chairman likely intended to “cool down the market.”

However, Eun is not the only crypto critic in South Korea’s financial regulatory space. Lee Ju-yeol, governor of the Bank of Korea has also taken aim at cryptocurrencies, calling the current bull market “abnormal” while rejecting the utility of virtual currencies in the payments arena.

Meanwhile, crypto continues to come under strict control measures in South Korea with regulators announcing plans to crack down on illegal cryptocurrency transactions.

Back in March, the FSC amended its financial reporting rules to include cryptocurrencies. Exiting crypto businesses now have until September to begin complying with reporting standards or risk jail terms for their executives.

The country’s tax authority is also focusing on the use of cryptocurrencies to evade taxes. As previously reported by Cointelegraph, the City of Seoul recently seized about $22 million in virtual currencies from tax delinquents.

editorial staff