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South Korean Legislature Accepts Political Donations In Bitcoin: Report

                                                            Der Abgeordnete Lee Kwang-jae – ein Mitglied der regierenden Demokratischen Partei in Südkorea – plant Berichten zufolge, Wahlkampfspenden in Form von digitalen Assets zu erhalten.  Er beabsichtigt, ab Mitte Januar nächsten Jahres auch nicht fungible Token (NFTs) als Quittung für solche Beiträge auszugeben.

Crypto to fuel political campaigns

According to a report by The Korea Held dated December 30th, those are included in the initiative Cryptocurrencies the two largest after Market capitalization being – Bitcoin (BTC) and Ethereum (ETH) as well as some local tokens. If this is realized, MP Lee Kwang-jae will be the first legislator in the Asian country to accept digital assets for campaign funding.

“We are currently reviewing a selection of local ones Wallet– Providers (virtual assets). We will check our wallet address on our blog, Facebook page and YouTube channel in early January, “said an official from Lee’s administration.

Since it is an experimental project, lawmakers said it initially intends to receive cryptocurrencies worth 10 million won (around $ 8,400) with a limit of 1 million won ($ 840) for each contributor.

The donated assets will later be converted into cash at a local digital asset trading venue. They are then deployed in accordance with fiscal regulations.

Lee’s office warned that the actual value of the donation could be different due to the increased volatility of the cryptocurrency industry when converting to fiat currencies. This could result in tax withholding amounts that differ from what people originally expected when completing year-end tax returns.

The controversial tax policy

Since the beginning of 2021, the government of the East Asian country has been trying to impose strict rules on the local ecosystem for digital assets. One of them involved beating those who make more than $ 42,000 in profits from trading cryptocurrencies with a 20% tax. The law should come into force in early 2022.

A few months later, however, the ruling party – The Democratic Party – proposed a shift in tax policy. According to the legislature, the country does not have a well-thought-out plan for implementing the taxation process.

Shortly afterwards, the opposition The People Power Party also argued that the legislation needed to be postponed. MP Cho Myoung-hee – a member of the opposition – said that “it is not right to levy taxes first at a time when the legal definition of virtual currency is ambiguous”.

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Source: Crypto News Deutsch

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