South Korea's Minister of Strategy and Finance, Hong Nam-Ki, has promised that the controversial cryptocurrency tax code will take effect on January 1, 2022, despite moves by the Democratic Party majority to delay it until 2023.
The tax code will impose a 20% tax on income generated by crypto transactions exceeding KRW 2.5 million, or about $2,100.
International media reported this week that the Democratic Party, which holds a slim majority in South Korea's National Assembly, intends to pass a bill postponing the cryptocurrency tax law until the end of October. However, the party faces a tough battle to pass the bill in the face of Hong's opposition, as he only has a slim majority.
Hong has immense political power, being a former South Korean prime minister and was appointed finance minister by current President Jae-In Moon.
This is at least the second time the minister, who is a member of the minority People Power Party (PPP) in the country's government, has told the majority Democratic Party that the tax will go into effect as planned despite their opposition.
Kim Byung-Ook, a National Assembly representative from the Democratic Party, asked the minister during a National Assembly session on Wednesday whether the tax could be postponed until 2023 to coincide with the capital gains tax on stocks.
