South Korean Political Parties Vow to Support Crypto

South Korean Political Parties Vow to Support Crypto

South Korea’s main political parties have unveiled crypto-associated election vows to win younger votes. These vows entail local spot bitcoin exchange-traded funds (ETFs) and more crypto taxation pushback. 

The ruling and opposing political parties have promised citizens that new commitments that enhance the local cryptocurrency economy will be enacted. This strategy seeks to win votes in the April 10 general election.

Parties Affiliate with Crypto to Woo Younger Voters

According to Lee Byung-uk, a professor of digital finance at the Seoul School of Integrated Sciences and Technology, the two parties believe that acting in favor of crypto assets will woo younger voters.

South Korea’s Democratic Party, the opposition party, is vowing to enable local financial institutions to launch spot ETFs and permit retail investors to buy them via accounts with tax exclusions.

Besides, it aims to boost tax benefits offered to crypto investors. This includes increasing the tax-deductible threshold from the present 2.5M won to 50M won. 

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In the meantime, the ruling People Power Party has made pledges to the crypto industry that seem less progressive compared to its competitor. Its emphasis entails bolstering current efforts to protect crypto investors. This includes vowing to enact the remaining 50% of the nation’s act on safeguarding crypto users. 

Further, the party promises investors to push back crypto investment taxation, beginning in January next year.

The postponement of crypto gain taxation in South Korea has occurred once, from its earlier starting date of Jan 1 last year. According to local crypto investors, it should be pushed back further since the government has not prepared the appropriate infrastructure. Besides, it must prepare safety nets for crypto trading before a tax is levied.

Executives Doubt Pledge

Kim Hyoung-joong, the president of Korea Fintech Society, a local think tank, noted that the taxation holiday or permitting spot Bitcoin exchange-traded funds could easily take place if the two parties agree. Nevertheless, the idea that several Koreans still view crypto negatively remains a pressing issue.

Kim noted that the most straightforward way forward entails revising the Venture Investment Promotion Act, which prevents the nation from labeling blockchain development companies as venture firms. 

Additionally, he said that the move will aid in improving the public’s perspective concerning blockchain and crypto being a center of unlawful speculation. 

Kim also said that irrespective of the types of campaign promises made, the main parties could be affected by a political battle capable of pushing back crypto bills for the foreseeable future.

Crypto-enhancing proposals were declared in South Korea’s 2022 presidential election. President Yoon Suk-yeol promised several alterations to accommodate the expanding sector, including removing the veto on initial coin offerings (ICOs).

However, a majority of Yoon’s crypto campaign pledges are still unattended. Lee said that non-expert politicians are delivering a lot of wrong signals that lack validation or consistency. Besides, they are more focused on the votes.

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