With less than three months left before South Korea begins taxing cryptocurrency gains in January, investors have turned to collective action to demand a delay. As calls grow in the political arena to reconsider the start date, pushback from investors is spreading as well.
Cryptocurrency investors will stage LED truck protests from the 12th through the 23rd at key locations in Seoul, including the National Assembly, government complexes and the Bank of Korea, calling for the tax to be postponed, according to financial industry sources on the 12th.
An LED truck appeared on the 12th in front of the main gate of the Bank of Korea in Seoul's Jung-gu district, where the National Assembly's Finance, Economy and Planning Committee was holding a parliamentary audit. Messages on the display read, "Delay the crypto tax, please save us," and "We do not support the party. We support delaying the crypto tax." Investors plan to deploy a total of 36 trucks over the next 10 days to press for improvements to the tax system and a postponement of its launch.
Investors say their objection is less about the tax itself than about what they see as inadequate preparation. Transactions routed through overseas exchanges or private wallets make acquisition costs and actual investment gains and losses difficult to determine, they argue, and unlike stocks and other financial investment products, losses cannot be carried forward to offset future gains.
One cryptocurrency investor who joined the protest said the issue is not a refusal to pay. "We are not saying we will not pay taxes. We are asking that they be levied according to reasonable standards," the investor said. "If you make a profit from investing, it is right to bear the tax. But we need to examine whether the current tax framework adequately reflects the realities of cryptocurrency trading."
Another investor called for clearer guidance before the rules take effect. "Clear guidelines must first be put in place on which transactions taxpayers should classify as taxable and how to calculate gains," the investor said. "While the rollout is postponed, the reporting procedures and related infrastructure should be overhauled to create a tax environment that investors can accept."
The government, which had maintained its plan to begin taxation on Jan. 1, has recently signaled more emphasis on gathering views. Lee Hyoung-il, deputy prime minister and minister of finance and economy, said at a parliamentary audit on the 6th that the government would "gather a wide range of views" on the possibility of a delay.