Political Campaigns Fueled by Crypto
According to a report published on December 30 by The Korea Held, the initiative will include the two largest cryptocurrencies by market capitalization, Bitcoin (BTC) and Ether (ETH), as well as a few local tokens. Rep. Lee Kwang-jae will be the first lawmaker in the Asian country to take digital assets for campaign money if his proposal is accomplished.
"We're looking into a number of local (virtual asset) wallet providers right now." In early January, we will examine our wallet address on our blog, Facebook page, and YouTube channel," a Lee administration official noted.
Given that this is an experimental project, the lawmaker's office stated that it will first accept 10 million won ($8,400) in cryptocurrency, with a 1 million won ($840) limit set for each contributor.
At a local digital asset trading venue, the donated assets will be transformed into cash. They will be used in conformity with political finance legislation after that.
Due to the increased volatility of the bitcoin business, the real value of the donation may fluctuate when translated into fiat currencies, according to Lee's office. When it comes to year-end tax settlements, this could lead to tax deduction amounts that differ from people's initial expectations.
The Politically Divisive Tax Policy
The government of the East Asian country has been trying to impose severe controls on the local digital asset ecosystem since the beginning of 2021. One of them suggested a 20% tax on anyone who make more than $42,000 from cryptocurrency trading. The law was expected to go into force at the beginning of 2022.
However, the ruling party, the Democratic Party, advocated delaying the taxes policy a few months later. According to MPs, the country lacks a well-thought-out framework for implementing the taxation system.
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