South Korea’s Rival Political Parties Compete for Crypto Investor Support
With only three weeks remaining until the general election, South Korea’s rival political parties are vying for support from crypto investors, who have become a significant voting group. The parties recognize the importance of addressing cryptocurrency-related policies due to the surging popularity of this emerging industry. Additionally, South Korea has seen a rise in the number of crypto investor voting groups. Bitcoin’s price surge has captured public attention, trading at 92.1 million won ($68,654) on Upbit, the country’s largest cryptocurrency exchange. Despite a slight dip from its recent peak, it still represents a substantial increase of over 60% compared to the beginning of the year.
Both Parties Present Crypto Policy
Both the conservative People Power Party (PPP) and the rival Democratic Party (DP) have presented their policy proposals to institutionalize crypto-assets, although with different approaches:
- The PPP vows to extend the tax deferral on crypto-assets that is set to expire in January 2022. They also plan to introduce additional legislation to enhance investor protection and establish a committee dedicated to monitoring the industry and safeguarding investors. Furthermore, they aim to establish standard rules for regulatory filings by crypto exchanges.
- The DP proposes a more progressive stance on cryptocurrencies. They plan to approve the issuance, listing, and trading of cryptocurrency-backed ETFs and increase the deduction limit for capital gains from crypto-asset investments. Additionally, they pledge to ban crypto trading by lawmakers while parliament is in session.
However, the finer details of these policies are yet to be refined. Concerns arise regarding potential unfair treatment regarding taxes on gains from crypto-asset investments due to President Yoon’s recent pledge to eliminate the planned capital gains tax on stock investment gains, scheduled to take effect in 2025. This may influence voting decisions.
South Korea Could Allow Spot ETFs
South Korea’s financial watchdog is discussing the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the country. While some authorities hold a positive stance on virtual assets, others are more cautious. Internal discussions are ongoing to consider all perspectives. Currently, spot Bitcoin ETFs are not available for South Korean crypto investors. In January, the country’s financial authorities announced that they had no plans to regulate the sales of Bitcoin futures ETFs.
Hot Take: Political Parties Compete for Crypto Investor Votes
As the general election approaches in South Korea, rival political parties are actively seeking support from crypto investors, who have emerged as a key voting group. The parties understand the importance of addressing cryptocurrency-related policies due to the industry’s increasing popularity. Bitcoin’s price surge has attracted public attention and significantly impacted voter sentiment. The conservative People Power Party and the liberal Democratic Party have presented their policy proposals, outlining different approaches to institutionalizing crypto-assets. However, concerns arise regarding potential unfair tax treatment for gains from crypto-asset investments compared to stock investment gains. Furthermore, discussions are underway regarding the potential approval of spot Bitcoin ETFs in South Korea. This decision could have a significant impact on the country’s crypto market and investor sentiment.
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