Min Calls for Framework, Stablecoin Before Crypto Taxation in South Korea

South Korea's virtual-asset taxation efforts may be delayed due to concerns about establishing a clear framework and fair tax system. Rep. Min Byung-duk, a lawmaker with the Democratic Party of Korea, stated that launching crypto taxation early next year would be premature without a basic law in place.

Min emphasized the need for a tax-loss carryforward system, allowing investment losses to be deducted from future gains. This is crucial to prevent investors from feeling unfairly taxed if their losses are not recognized. The lawmaker suggested that such a system should be allowed for at least five years.

In addition to taxation, Min also highlighted the importance of introducing a won-denominated stablecoin to support domestic financial stability and reduce international remittance costs. He believes that this would create new businesses and services, and even mentioned that large companies like Samsung conduct numerous international remittances, which could be greatly simplified with a stablecoin.

Min also took aim at the '51% rule,' under which stablecoin issuance is limited to entities controlled by the banking sector. He argued that this does not guarantee stability and that banks and fintech companies should each take on their respective roles in the market, rather than trying to protect existing turf.