Thomas Daniels
In the lead-up to South Korea’s national elections scheduled for April, both the ruling and opposition factions are actively engaging the electorate with policy proposals favorable to cryptocurrency.
South Korea, a nation characterized by its vigorous cryptocurrency trading activity, stands on the brink of influencing the international crypto market in a significant way through these election commitments.
Reports from a variety of domestic sources indicate that the People Power Party, currently in governance, has pledged to investigate the viability of Bitcoin ETFs that are traded on the spot market. This party has unveiled intentions to establish a committee dedicated to the advancement of digital assets, which will be responsible for proposing new laws and regulatory actions. Furthermore, it has declared a focus on developing regulatory standards before implementing taxation measures.
Additionally, the party proposes to postpone the imposition of taxes on profits from cryptocurrency transactions until a future date. Originally scheduled for 2023, the taxation on gains from digital asset transactions, including sales or lending, was deferred to 2025. The latest campaign promise now hints at a further delay, possibly extending to 2027.
Competing perspectives from other regional commentators have also highlighted that the Democratic Party, the principal challenger, has shown support for investments in Bitcoin ETFs traded on the spot market, mirroring the pro-crypto orientation of the incumbent administration.
These policy propositions suggest that, irrespective of the election’s outcome, South Korea’s cryptocurrency sector may experience a boost from governmental policies that are increasingly supportive.
