Frustrated Democratic Party Unable to Reach Conclusion on Coin Tax Delay, What About the Basic Law?

[Block Media Reporter Oh Soo-hwan] The Democratic Party's actions surrounding the taxation of digital assets (virtual assets) are causing frustration. Although the party leadership has publicly raised the need to reconsider taxation and the possibility of a delay has been opened up to the Blue House, the party and government have yet to reach a conclusion. Nearly ten days have passed since the emphasis on a delay, but they continue to repeat statements like "we will listen to more opinions and review them."

Looking back at the process, the direction was relatively clear. On the 6th, Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il stated during a National Assembly audit that he would broadly gather opinions from the National Assembly, experts, and the industry regarding taxation. This opened the door for reconsideration from the previous stance of proceeding with taxation as planned.

On the 20th, 1st Vice Minister of Economy and Finance Kwon Dae-young met with industry experts to discuss ways to improve the taxation system. Issues raised by the industry, such as fairness in taxation with overseas exchanges, taxation standards by transaction type, and securing taxation data, were brought back to the table.

Additionally, Democratic Party leader Kim Min-seok lent his support. On the 22nd, he stated that there should be a focused discussion on whether the conditions for implementing taxation as planned have been met and suggested a final check to Deputy Prime Minister Lee. On the 25th, it was revealed that the presidential office was also considering a delay. Officially, it was 'undecided,' but the atmosphere seemed to lean towards a delay.

During the Democratic Party's general assembly on the 27th, opinions in favor of a delay were also expressed. Floor Policy Chief Kim Han-kyu explained that there were no opposing views and that the atmosphere within the party seemed to be leaning towards a delay. However, a party consensus had not been established. The following day's party-government meeting was similar. While there was agreement on the principles of taxation, they again postponed the conclusion, stating that they needed to further examine the institutional conditions.

The inability to reach a conclusion despite the atmosphere leaning towards a delay is due to differing opinions within the party. There are concerns that delaying taxation again, after already postponing it three times, could undermine tax principles and policy trust. This is a matter that needs to be thoroughly considered. However, decisions cannot continue to be postponed simply due to differing opinions. It is the role of the party leadership to reconcile differing views and make policy judgments.

Moreover, issues of fairness with overseas exchanges and lack of infrastructure are not new problems that have recently emerged. They are longstanding issues that have been repeated over the years. If the government and the National Assembly merely confirm tasks they have failed to resolve, what meaning would additional meetings have? What is needed now is not another round of opinion gathering, but a concrete decision on how to solve the confirmed challenges.

The Democratic Party will meet with representatives of the five major domestic exchanges on the 30th. It cannot be criticized for listening to industry opinions. However, considering that the government met with the same stakeholders just ten days ago to hear about the preparation status and suggestions, it is questionable how many new solutions will emerge from this meeting. Calling busy exchange representatives twice in ten days to hear the same stories, review them again, gather opinions within the party, and when will a conclusion be reached?

A more concerning aspect is the 'Digital Asset Basic Law.' While the delay in taxation is a matter of adjusting the timing of an already established system, the basic law involves creating new rules for the market. The interests involved are extremely complex, ranging from regulations on business entry to stablecoin issuance, supervisory systems, and exchange governance.

The Democratic Party leadership also emphasizes the need for the basic law. On the 28th, during a party-government meeting, Leader Kim pointed out the lack of taxation infrastructure and the potential confusion for taxpayers, and the party and government agreed to accelerate the legislative process for the basic law. The problem is that emphasizing the need is entirely separate from actually passing the legislation.

If even the delay in taxation is adrift due to differing opinions within the party, it is unlikely that the basic law legislation will be any different. The longer the legislation is delayed, the greater the uncertainty for companies that have been preparing their businesses based on the premise of establishing a system. If legislative efforts fail this year, it is hard to guarantee that it will be processed next year.

Political decisions require caution. Since the taxation that has already been postponed three times is being delayed again, sufficient discussion and persuasion processes are essential. However, caution and indecision are distinctly different. Repeatedly discussing already identified issues is not careful decision-making but rather an evasion of responsibility.

What the Democratic Party leadership needs to show now is not repeated meetings but decisive action and accountability. They must clearly present the necessity of delaying taxation and the direction for system improvement, and prepare a concrete execution plan accordingly.

If they cannot even conclude the already determined delay in taxation, how can they assert that they will push for a more complex basic law? What is currently at stake is not merely whether to delay taxation. It is the leadership and drive of the Democratic Party to bring the uncertain digital asset market into the institutional framework itself.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.