Korean Legislator Receives Campaign Funds In BTC

Southern Korea’s politician, lawmaker Lee Kwang-Jae has revealed his intentions to receive campaign funds in BTC and Ether. The representative who is a party member of the dominant democratic party in the country has reportedly announced that he will rally funding for his campaign program.

Lawmaker Lee Kwang-Jae is a senator under the ruling democratic party of south Korea. He is a pro-crypto proponent and has solidified his position in the community with the new plans he has aired for his campaign. Non-fungible tokens (NFTs) will be issued as proof of payments-receipts for donating individuals or entities come next year.

Crypto As Campaign Revenue In Southern Korea

In the news published by Korean local news outlet, the Kore Held, lawmaker Lee’s initiative will utilize the two largest cryptocurrencies globally -the Bitcoin (BTC) and Ethereum (ETH). Several screened local crypto tokens will also be accepted for payments; this is done to encourage developers and crypto enthusiasts in the nation’s human resource pool.

The success of Rep Lee’s initiative will be the first of its kind in the country since the crypto sector boom in 2019. It will effectively catapult the Asian country to be at the forefront of the globally relevant and saturation race of cryptocurrency adoption.

In a statement, lawmaker Lee’s campaign team member revealed they are currently reviewing and screening several local wallets that can be used as receiver’s addresses for donations across the country. The campaign team will reportedly reveal their wallet address online on multiple platforms.

The platform utilized for information dissemination includes social media Facebook, YouTube, and its online blog site.

It Is An Experimental Project

The announcement emphasized that the lawmaker’s initiative was a prototype, a test run of some sort. The office revealed that it intends to accumulate 10 million Korean won, equivalent to almost 8400 dollars worth of the crypto token, and a maximum cap of 1 million won, equivalent to about $840.

Warnings came from the lawmaker’s office to Koreans, telling them to take note of the price actions of the different tokens utilized for their daily activities. Actual values of the funds donated by Koreansifht differ for the perceived value- the value of fiat currency transferred via crypto.

Accordingly, the recorded variation might result in tax levies that can be more or less than Korea’s projected estimates when the year-end balancing takes place.

South Korea’s Disputed Tax Policy

In the face of South Korea’s crypto boom, the country’s government proposed new reforms that will shape the developing sector in January. The reform included a taxation policy that will see profit makers 

in the crypto industry earning more than $42,000 from trading and related activities pay up to 20% of their income as tax. The legislation was slated to be effected in early 2022.

A few months later, however, the Asian country’s ruling party, the Democratic Party, argued for a delay in executing the taxation policy. The party’s lawmakers cited the lack of a comprehensive protocol for implementing policy and punishment for non-compliance successfully.

Further developments down the road saw opposition party reps tackle the tax policy citing the lack of a clear legal definition of the digital assets class.