Korea crypto tax debated; Crypto.com on a tear

Transcript

Korea’s crypto tax debate is rumbling on, and we are following its ups and downs.

Welcome to The Daily Forkast November 25, 2021. I’m Megha Chaddah of Forkast.News covering all things blockchain.

The saga over Korea’s planned crypto capital gains tax continues after the National Assembly failed to reach agreement on delaying it. We’ll take a look at plans for more discussion over the matter and a whole lot more coming up.

Let’s get you up to speed from Asia to the world.

Let’s kick off with some of the top stories out of Asia today.

First up, one of Australia’s leading superannuation funds, Rest Super, is looking at investing in crypto, according to The Australian Financial Review.

The company’s CEO said in an era of inflation, crypto could be a good place to invest. However, a spokesperson later clarified that this will not happen in the immediate future.

Australia superannuation funds are government mandated retirement plans, which control vast sums of money, with Rest Super Fund worth almost US$48 billion.

Earlier this week, the country’s biggest fund, AustralianSuper, took a hard line stance, saying it didn’t see crypto as investable for its members.

Over in Japan, a group of around 70 companies, including the country’s top banks, plans to begin testing a digital currency backed by bank deposits this year.

A white paper reveals that the Digital Currency Forum, whose members include MUFG Bank, Mizuho Bank and Japan Post Bank, has tentatively named the currency DCJPY. It will be deployed for various use cases by next year, with the aim of improving payment speed and efficiency.

Meanwhile, the Bank of Japan is testing the technical feasibility of a CBDC, which is currently at the proof of concept stage.

You can find out more at Forkast.News.

Where there’s income, there’s tax. But when, is the question for crypto investors in South Korea.

The country’s National Assembly is discussing ways to postpone the current plan to tax 20% on virtual asset gains from next year. However, the financial authorities are adamant on implementing the tax on schedule.

Forkast.News Danny Park has more.

The bill on delaying the crypto asset tax failed to pass the National Assembly’s Standing Committee earlier this week due to opposition from government officials present.

Back in January, South Korea announced a 20% tax on virtual asset gains over about US$2,100 from 2022. That sparked controversy and calls for a delay because the threshold for stock gains is significantly higher at around US$42,000.

The issue became a political affair, with parties hoping to win over younger crypto savvy voters for next year’s presidential election and the ruling Democratic Party’s presidential candidate made the delay one of his main promises.

However, Hong Nam-ki the finance minister has repeatedly assured the public that the tax infrastructure is prepared for virtual assets and a delay may disrupt policy consistency.

The delay bill is to be discussed again before the end of the week, according to the National Assembly’s tax subcommittee.

One expert told Forkast.News he believes the delay will be approved.

Both the ruling and opposing parties have agreed [on the delay] Legislative matters are solely handled by the legislature. So I don’t think even if the Ministry of Economy and Finance opposes, it will be able to stop the bill from being passed. The bill will probably be passed on the 26.

Delay may earn authorities more time to refine the tax plan. Nevertheless, some say that may not be enough.

For Forkast.News I’m Danny Park.

Over on the markets, going against the broader trend, Crypto.com Coin continues to be on a tear, while it’s less positive news for Cardano, which has been falling steadily since its all time high of US$3.10 in September.

Forkast.News Lachlan Keller takes a look at what’s driving those moves.

According to data from CoinMarketCap, Crypto.com Coin, the token issued by the exchange of the same name gained 12% Wednesday night Asia time, reaching an all time high of just a touch under US$0.97, though it has retreated since trading at US$0.84 by Thursday lunchtime.

It’s been a big month for Crypto.com, with over US$940 million in total value already locked in its EVM compatible chain Cronos since it launched on November 8. That’s according to DeFiLlama.

In addition to that, the Singapore based exchange won naming rights starting Christmas Day for Los Angeles iconic Staples Center Arena as part of a broader global advertising campaign featuring Hollywood actor Matt Damon.

Meanwhile, it’s tougher times for Cardano native token Ada. The world’s former number three blockchain saw its price take a tumble after the crypto trading platform eToro announced it was delisting the token for US based users by the end of the year.

Etoro said the delisting, which also applies to the Tron Foundation token TRX, was necessary due to the evolving regulatory environment.

Cardano has slid since anticipation over its Allonzo upgrade saw it hit an all time high in September. It’s now sixth position by market cap, while Tron has fallen more than 20% cent from the six month high it hit in mid-November.

For Forkast.News I’m Lachlan Keller.

That’s The Daily Forkast from our vantage point right here in Asia. Hit like, hit subscribe, appreciate it always. Help us reach our goal to reach more of you. For more, visit Forkast.News. I’m Megha Chaddah. Until next time.