- South Korean political parties are leveraging the country’s vibrant crypto market to attract voters ahead of the parliamentary election.
- The People Power Party commits to delaying the digital asset tax implementation, while the Democratic Party aims to ease restrictions on ETFs, including those tied to bitcoin from the US.
- Amidst South Korea’s active participation in the crypto bull market, regulatory concerns prompt plans for stricter token listing rules and broader industry oversight by both political factions.
South Korean political campaigns are utilising the nation’s thriving crypto market as a strategy to appeal to voters ahead of the parliamentary election.
SK political parties clash over crypto policies
Both the People Power Party, led by President Yoon Suk Yeol and the opposition Democratic Party have addressed cryptocurrency issues in their campaigns.
The People Power Party pledges to postpone the implementation of a digital asset tax, recognising its importance to voters, while the Democratic Party focuses on lifting restrictions on exchange-traded funds (ETFs), including those involving bitcoin products from the United States.
Also read: Ripple CEO: Crypto market to exceed $5T, driven by halving and ETFs
South Korean’s crypto bull market
South Koreans are actively engaged in the crypto bull market, demonstrating a keen interest in a variety of cryptocurrencies beyond bitcoin.
Hwanseok Choi, a policy specialist from the Democratic Party, affirmed that their party’s platform advocates for the incorporation of both domestic and international ETFs.
The People Power Party pledges to postpone planned taxes on crypto gains beyond 2025.
South Korea’s securities regulator has voiced concerns about potential legal issues surrounding the local brokerage of ETF offerings, causing market uncertainty.
Also read: Australia to launch own spot bitcoin ETF in 2 months
Gear up
It’s notable that even election candidates themselves have some involvement with cryptocurrencies, as approximately 7% of them reportedly own digital assets.
South Korea plans to implement stricter regulations for token listings on exchanges, including blocking tokens compromised by hacks.
Both political parties are poised to pursue broader industry regulation. Additionally, financial authorities are set to release guidelines for virtual asset trading support by the end of this month or early next month.
