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Park Soo-young Urges Swift Decision on Crypto Tax Delay, Says Rules and IT Infrastructure Must Come First
Summary
- Park, the deputy policy chief, urged the government to quickly confirm a delay to virtual-asset taxation, saying institutional improvements and IT infrastructure must come first.
- He said a fair tax environment is still lacking because concrete standards and systems, including taxable assets and tax calculation methods, remain inadequate even after the five largest domestic virtual-asset exchanges and the National Tax Service exchanged 49 official documents.
- He said difficulty tracking overseas trades and delays in CARF participation could concentrate the tax burden on users of domestic exchanges, and called for an additional delay and an effective tax regime, adding that funds flowing into local exchanges have fallen by half and the investment environment is worsening.
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Park Soo-young, deputy policy chief of the ruling People Power Party, called for another delay in South Korea’s virtual-asset tax and said related rules and IT infrastructure should be put in place first.
In a Facebook post on October 26 titled “Announce Confirmation of a Virtual-Asset Tax Delay,” Park urged the government to swiftly finalize its decision to postpone the tax. He stressed that virtual-asset investors are not refusing to pay taxes themselves, but are demanding a fair taxation environment.
He took issue with the continued lack of adequate computer systems needed for taxation. According to his office’s findings, the country’s five largest virtual-asset exchanges exchanged 49 official documents with the National Tax Service but still have not completed the relevant systems. He also said detailed standards, including what would be subject to tax and how tax liabilities would be calculated, have not been sufficiently established.
Park also warned that difficulty tracking overseas transactions could undermine tax fairness. He said the Crypto-Asset Reporting Framework, or CARF, will include the U.S. starting in 2029, while China has not even set a participation schedule. That, he said, could leave users of domestic exchanges shouldering a disproportionate tax burden.
He also cited the slowdown in the virtual-asset market as a reason for delaying taxation. Funds flowing into domestic exchanges have dropped to about half of previous levels, he wrote, arguing that the investment environment is worsening.
Park also mentioned recent moves by the presidential office to review a tax delay. He said related discussions gained momentum four days after he highlighted inadequate tax preparations at a National Assembly standing committee and during a parliamentary audit, and held a joint press conference with youth groups.
He said the government should quickly decide whether to grant an additional delay while also ensuring the tax regime is effective and fair. In particular, he urged authorities to make sufficient institutional preparations first so as not to limit younger people’s opportunities to build assets.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.