South Korean Cryptocurrency Investors Petition for Tax Delay and Enhanced Regulatory Oversight
South Korea’s cryptocurrency market has witnessed significant growth, making it a global hub for digital asset trading. However, this thriving sector is currently facing two major challenges: the impending introduction of taxes on cryptocurrency gains and concerns over regulatory oversight of local exchanges. In response to these issues, a petition has been launched in the National Assembly of South Korea, urging for a delay in tax implementation and increased transparency from the Digital Asset Exchange Alliance (DAXA).
The petition, submitted on March 21, aims to postpone the tax plan scheduled for January 2025. This request arises from fears that local investors might migrate to overseas exchanges to avoid the new taxation. By April 20, the petition intends to gather 50,000 signatures to compel a legislative review on this matter (as of Tuesday afternoon in Asia, it had already accumulated 10,888 signatures).
Beyond tax concerns, the petition also demands more rigorous oversight of DAXA—an advisory group comprised of South Korea’s top five cryptocurrency exchanges. Critics argue that the decision-making process regarding supported and discontinued cryptocurrencies is not transparent, leaving it susceptible to arbitrary decisions.
South Korea’s robust cryptocurrency market can be evidenced by the performance of Upbit, its leading exchange, which recorded an impressive $185 billion in trading volume during March alone. This figure corresponds to approximately 9% of the global exchange trading volume. The fervor surrounding cryptocurrency trading in South Korea has reached new heights, with local exchanges surpassing the country’s KOSPI stock market’s trading volumes on certain days. For instance, on March 11, South Korean exchanges recorded a remarkable trading volume of 11.85 trillion Korean won ($8.8 billion), surpassing the KOSPI’s trading activity. (Reports indicate that South Korean exchanges recorded a staggering trading volume of 11.85 trillion Korean won ($8.8 billion) on March 11, surpassing the KOSPI’s trading activity.)
Despite these advancements, it is crucial to address the challenges and ensure a favorable environment for this burgeoning industry. A well-regulated market can encourage trust among investors while supporting South Korea’s position as a global leader in cryptocurrency trading.
