South Korea’s People Power Party is trying to scrap proposed taxes on digital assets to ensure fairness for investors.
As the party seeks justice, the Bank of Korea recently nominated a well-known stablecoin skeptic who favors tight monetary policies as its governor.
Why does the People Power Party want to completely abolish the cryptocurrency tax?
The People Power Party has taken a firm stance against the tax system on virtual assets Originally scheduled It will be implemented in January 2027. The party leadership is scheduled to hold a special high-level meeting at Coin One’s headquarters in Park One Tower in Seoul on March 25.
The meeting will include top-tier officials such as floor leader Song Eun-seok and Policy Committee Chairman Yoo Sang-beom along with representatives from Upbit, Bithumb, Coin One, Korbit, Gopax, as well as the Digital Asset Exchange Joint Council (DAXA).
The meeting will be to discuss the “Law Partially Amending the Income Tax Law,” which was proposed by floor leader Song on March 19. Under current laws, cryptocurrency gains exceeding 2.5 million won (about $1,800) were supposed to be taxed at a rate of 22%.
However, Song believes that since the government already plans to abolish the financial investment income tax to protect the capital market, keeping a separate tax on virtual assets “is problematic in terms of property rights.”
The goal of the PPP is to eliminate these tax regulations entirely and ensure that cryptocurrency investors are not unfairly targeted compared to traditional investors in the stock market.
During the next 45-minute special session, the ceremony will take place Plan a discussion International trends, the reality of the local market, and how to deal with foreign transaction issues.
Bank of Korea appoints new governor
Shin Hyun-sung has been officially nominated as the new governor of the prefecture Bank of Korea. Shen previously served as Research Chair at the Bank for International Settlements (BIS) and a Professor at Princeton University. Because of Shin’s nomination I blinked He resigned from his duties at the Bank for International Settlements immediately, and Frank Smits took over his position there in the meantime.
The ongoing crisis in the Middle East has raised fears of stagflation. The won-dollar exchange rate is currently hovering around 1,500 won, the highest level since the previous foreign exchange crisis, and Shin’s primary task will be to stabilize the currency.
He is widely viewed as a “hawk,” a term used to refer to central bankers who favor tight monetary policies and higher interest rates.
However, another thing that crypto stakeholders will be looking for is how Shin will insert himself into conversations around the issuance. Won-backed stablecoins.
During the Economists’ World Conference (ESWC) last year, Shen said to caution Against won-based stablecoins, saying they are a shortcut to bypass foreign exchange regulations. He fears that users being able to easily exchange won stablecoins for dollar-denominated virtual assets via blockchain would open a huge channel that could drain South Korea’s financial reserves during the crisis.
Furthermore, BIS annual reports published during its tenure warned that stablecoins often failed to function as stablecoins and posed risks to “currency sovereignty.”
Shin’s negative view of stablecoins suggests that the Bank of Korea may push for stricter controls or even block the widespread adoption of private stablecoins in favor of a central bank digital currency (CBDC).
