Cryptocurrency Influence in South Korean Political Campaigns
Political campaigns in South Korea are drawing on the country’s thriving cryptocurrency market to engage with voters ahead of the parliamentary election. Both major political parties, including President Yoon Suk Yeol’s People Power Party and the opposition Democratic Party, have incorporated promises related to cryptocurrency in their campaign strategies.
Crypto Promises in Political Platforms
- The People Power Party vows to postpone the implementation of a digital-asset tax to acknowledge the significance of the crypto industry to voters.
- Conversely, the Democratic Party centers on removing limitations on exchange-traded funds (ETFs), encompassing those handling US Bitcoin products.
Both parties’ strategies reflect an awareness of the influence and importance of the growing crypto market in appealing to voters.
Opening Up to ETFs
- Hwanseok Choi, a policy expert from the Democratic Party, emphasized support for the inclusion of both local and international ETFs in their agenda.
- The endorsement of ETFs dealing directly with Bitcoin gained traction following US regulatory approval earlier this year.
- These Bitcoin-related ETFs have amassed approximately $57 billion in assets.
Despite this progress, South Korea’s securities authority has raised concerns about local brokerage of these products potentially violating regulations and creating market uncertainty.
South Korea’s Crypto Engagement
- South Korean citizens actively participated in the recent crypto surge, known for their interest in various cryptocurrencies beyond Bitcoin.
- The country’s leading crypto exchange, Upbit, consistently ranks among the top global platforms in terms of trading volume.
- Recent investments by South Koreans in US-listed companies holding Bitcoin and crypto-futures ETFs highlight their enthusiasm for crypto assets.
The evolving crypto landscape in South Korea reveals a growing acceptance and adoption of digital assets among its populace.
Crypto Holdings Among Candidates
- Surprisingly, about 7% of election candidates in South Korea have digital asset holdings, as reported by Yonhap.
- Amidst the perceived risks associated with the crypto market, the recent value surge has overshadowed past setbacks.
- The government plans to implement investor-protection measures in July, demonstrating a commitment from both political parties to enhance industry regulations.
These developments underscore the dynamic evolution of cryptocurrency engagement and regulation within South Korea’s political and financial landscape.
Enhanced Regulations in South Korea
- New regulations in South Korea will enforce stricter requirements for token listings on exchanges, including blocking tokens involved in hacking incidents.
- The country’s financial regulators are preparing guidelines for virtual asset trading support, slated for release by the end of the month or early the following month.
- Guidelines will outline criteria for listing virtual assets, requiring explanations for past security incidents and recovery of any damages.
The upcoming regulations signal a proactive approach by South Korean authorities to safeguard investor interests and foster a more secure crypto trading environment.
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