South Korea’s upcoming general election is witnessing a crypto-focused battle between the country’s leading political parties. The Block, a crypto news reporter, reports that both the ruling and opposition parties are making promises aimed at bolstering the local cryptocurrency economy in an attempt to sway younger voters.
The Democratic Party, in opposition, plans to introduce measures allowing local financial institutions to launch spot crypto exchange-traded funds (ETFs). This move would grant retail investors access to these ETFs with tax exemptions, alongside expanding tax benefits for crypto investors, raising the deductible threshold significantly from 2.5 million won to 50 million won.
On the other hand, the ruling People Power Party pledges to reinforce efforts in safeguarding crypto investors by legislating the remaining half of the country’s act on protecting crypto users. Additionally, they promise to delay the implementation of crypto gains taxation, originally slated for January 2025, citing the lack of infrastructure and safety nets for crypto trading.
However, skepticism looms despite these promises. Kim Hyoung-joong, president of the Korea Fintech Society, emphasizes the prevailing negative perception of crypto among most Koreans. He suggests that revising laws, such as the Venture Investment Promotion Act, could help improve the public’s perception of blockchain and crypto.
Political promises often don’t match reality, as seen with President Yoon Suk-yeol’s unmet pledges from the 2022 election, like lifting the ban on initial coin offerings. Lee Byung-uk, a digital finance professor, blames politicians for inconsistency, prioritizing votes over action.
As the election approaches, the fate of these crypto-related promises hangs in the balance. While the potential for legislative changes exists if both parties reach an agreement, there’s also the risk of political gridlock delaying these initiatives indefinitely.
South Korea’s political landscape is involved in a conflict over cryptocurrency regulations, with promises abundant but mistrust present. It is unclear if these promises will be fulfilled, leaving the future of the country’s crypto economy in uncertainty.
