📰 Table Of Contents
Political Campaigns in South Korea and Crypto Market
Political campaigns in South Korea are leveraging the country’s prominent crypto market to attract voters ahead of the parliamentary election. Both major political parties, President Yoon Suk Yeol’s People Power Party and the opposition Democratic Party, have included crypto-related promises in their campaign platforms.
People Power Party’s Crypto Promises
- The People Power Party has pledged to delay the implementation of a digital-asset tax, recognizing the importance of the crypto industry to voters.
- The manifesto promises to postpone planned taxes on crypto gains beyond the scheduled timeframe of 2025.
Democratic Party’s Focus on ETFs
The Democratic Party has focused on lifting restrictions on exchange-traded funds (ETFs), including those holding US Bitcoin products. Hwanseok Choi, a policy specialist from the Democratic Party, stated that their manifesto supports the inclusion of both domestic and overseas ETFs, per a Bloomberg report.
The move to allow ETFs investing directly in Bitcoin gained traction after the US approved such products in January. These Bitcoin ETFs have already accumulated around $57 billion in assets. However, South Korea’s securities regulator expressed concerns that brokering these products locally might violate the law, creating confusion and impacting the market.
South Korea’s Crypto Market Enthusiasm
South Koreans have actively participated in the recent crypto bull market, and the country is known for its enthusiasm for various cryptocurrencies beyond Bitcoin. Upbit, the largest domestic crypto exchange, consistently ranks among the top global platforms in terms of trading volume.
Candidates and Digital Assets
Interestingly, even election candidates themselves have exposure to cryptocurrencies, with approximately 7% of them owning digital assets, according to a report by Yonhap that analyzed their asset disclosures.
Regulations and Guidelines
South Korea is implementing an investor-protection framework in July, and both political parties have indicated their intention to pursue broader regulation for the industry. The country is set to introduce stricter regulations for token listing on exchanges, including the blocking of tokens that have been hacked.
The upcoming guidelines specify that virtual assets with a history of hacking or security incidents will not be eligible for listing unless the cause of the incident has been adequately explained and the damages have been recovered. Furthermore, the guidelines state that for overseas virtual assets to be listed, there must be a white paper or technical manual available for domestic use. An exception provision has been included for virtual assets traded on overseas exchanges for more than two years.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
