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South Korea’s People Power Party Postpones Crypto Regulation Easing
South Korea’s ruling People Power Party has decided to indefinitely postpone its plans to ease crypto regulations, including the lifting of the ban on local spot Bitcoin exchange-traded funds (ETFs).
Background
According to a report from local media outlet Chosun Biz, the party recently removed virtual assets from its list of policy priorities, effectively abandoning its plan to make a pledge to ease regulations. Previously, the People Power Party intended to announce a virtual asset pledge ahead of the general election scheduled for April 10.
Party Focus
An official familiar with the party’s situation stated that the party leadership is currently focused on constituency nominations and personnel selection for the People’s Future, a proportional satellite party. Starting in March, the party will prioritize election campaigns in each constituency, leaving little possibility for the announcement of virtual asset pledges in the remaining period.
Challenges in Coordination
One of the key factors behind the party’s decision is believed to be the challenges faced in aligning with the government and financial authorities on cryptocurrency policies. The Financial Services Commission’s negative perception of investment risks associated with virtual assets has been a significant obstacle.
Proposals and Considerations
- The proposed pledge included plans to allow the issuance and trading of Bitcoin spot ETFs.
- The party considered postponing taxation on virtual assets for two years and permitting corporate investment in virtual assets.
- Insufficient consultation with relevant ministries and concerns over potential risks prevented the inclusion of these proposals as pledges.
Internal Investigations and Opposition Party Actions
The People Power Party conducted internal investigations to ensure no fraudulent activities or suspicions related to virtual assets among party officials. The Democratic Party’s pledges to allow Bitcoin spot ETFs and increase the deduction limit for virtual asset sales profits influenced the People Power Party’s decision to withhold their announcement.
Police Actions Against Crypto-Powered Drug Trafficking
South Korean police continue to combat crypto-powered drug trafficking, with recent arrests and charges related to illegal activities in the crypto space.
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.
