South Korea’s Political Race Heats Up with Crypto-Related Incentives
South Korea’s upcoming parliamentary election has thrown a spotlight on the country’s thriving crypto market, with both major political parties offering enticing crypto-related incentives to woo voters.
Promises of Tax Delay and ETF Access
President Yoon Suk Yeol’s People Power Party has pledged to defer the implementation of a digital-asset tax beyond the previously planned 2025 timeframe. This move aims to provide relief to crypto investors who have faced concerns about the tax’s impact on their holdings.
In contrast, the opposition Democratic Party has promised to lift restrictions on exchange-traded funds (ETFs) that directly invest in cryptocurrencies, including US Bitcoin-based ETFs. This policy would open up access to a wider range of crypto assets for South Korean investors.
Significant Voter Base
The crypto market holds significant sway in South Korea’s political landscape. Official data indicates that over 6 million South Koreans actively participated in the crypto market during the first half of 2022, representing a sizable voting bloc in the upcoming election.
ETF Controversy and Future Implications
The Democratic Party’s proposal to allow US Bitcoin ETFs has sparked some controversy. While the US has approved such ETFs, South Korea’s securities regulator initially indicated that brokering them locally could violate the law. This uncertainty has dampened investor enthusiasm.
Despite the controversy, experts believe that the long-term trend is towards greater acceptance of digital assets in South Korea. The country’s recently introduced investor-protection framework and both parties’ plans for wider regulation suggest a move towards legitimizing the crypto industry.
Conclusion
South Korea’s parliamentary election has placed cryptocurrencies front and center, with both major political parties offering enticing incentives to attract votes. The outcome of the election will shape the regulatory landscape for digital assets in the country and potentially impact the broader adoption of cryptocurrencies in Asia.