FSC chief says digital asset bill in final talks, crypto tax views still being gathered
In short
Financial Services Commission chairman Lee Eog-weon told a National Assembly audit on 22 October that talks on a digital asset basic act are in their final stage and that the government is still gathering views on crypto taxation. He was responding to a People Power Party lawmaker who urged scrapping or delaying the tax, due to start in January, until the law is in place.
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Financial Services Commission chairman Lee Eog-weon (이억원) said on 22 October that the government is in the final stage of consultations on a digital asset basic act, the framework meant to regulate the digital asset industry. He also said views on taxing virtual assets are still being gathered. He spoke at the National Assembly Political Affairs Committee audit in Seoul. [ 1 , 2 , 3 ]
The remarks answered Song Eon-seok (송언석) of the People Power Party. Song said the law had been promised within the year, but the government bill had still not come out. Newsis reported that he linked this to a July presidential briefing. He noted that the digital asset income tax takes effect on 1 January next year. [ 1 , 3 ]
Song said it was a case of tax coming first before it is legally clear what kind of product digital assets are, and he said taxation should be abolished or deferred until the bill is ready. Asia Economy quoted him as saying there is also a complaint that the financial income tax has been deferred while digital assets must pay income tax from next year. [ 1 , 2 , 3 ]
Lee replied that the legislation is in final-stage consultations and that he would work to have it introduced and discussed as quickly as possible. On the tax, he said "various circumstances need to be fully considered", according to Yonhap and Asia Economy. He added that there are various opinions and that views are being collected. [ 1 , 2 , 3 ]
Newsis and Asia Economy quote Lee as saying the Ministry of Economy and Finance is gathering opinions. Yonhap quotes him as saying the deputy prime minister had probably also spoken about it. [ 1 , 2 , 3 ]
Yonhap added that the tax was introduced by a 2020 amendment to the income tax law and has been deferred three times. It said the government is carrying out administrative procedures for a January start, while parts of the industry and the ruling party say it is premature because of unclear standards and a lack of infrastructure. [ 2 ]
Why it matters
The exchange shows that the start date of the virtual asset tax, scheduled for next January, was still being debated on 22 October. The chairman did not say whether it would be delayed.
Key facts
- Financial Services Commission chairman Lee Eog-weon spoke at the National Assembly Political Affairs Committee audit on 22 October. [ 1 , 2 , 3 ]
- Lee said the government is in final-stage consultations on the digital asset legislation and will move to introduce it as soon as possible. [ 1 , 2 , 3 ]
- People Power Party lawmaker Song Eon-seok said the government bill had not yet come out although the law was promised within the year, while the digital asset income tax takes effect on 1 January. [ 1 , 3 ]
- Song argued the tax should be scrapped or its start deferred until the law is ready. [ 1 , 2 ]
- Lee said there are various views on taxation and that, as he understood it, they are being gathered. [ 1 , 2 , 3 ]
- Lee said the various circumstances need to be considered fully regarding the tax. [ 2 , 3 ]
Confirmed by several sources
- Lee said talks on the digital asset legislation are in their final stage and that he will try to move as fast as possible. [ 1 , 2 , 3 ]
- Lee said views on virtual asset taxation are being gathered because opinions differ. [ 1 , 2 , 3 ]
- Song Eon-seok of the People Power Party questioned why taxation comes before the law that defines digital assets. [ 1 , 2 , 3 ]
Still unclear
- When the government bill on digital assets will be released. Lee gave no date, saying only that talks are in the final stage.
- Whether the virtual asset tax will be scrapped or delayed. Lee said views are being gathered and that circumstances must be considered, without stating a decision.
- Which body is gathering views on the tax. Newsis and Asia Economy quote Lee as saying the Ministry of Economy and Finance is doing so, while Yonhap quotes him referring to the deputy prime minister having spoken about it.