- South Korean parties offer crypto-related incentives ahead of parliamentary elections to secure votes.
- Democratic Party vows to remove restrictions on domestic and US-based crypto ETFs.
- People Power Party pledges to delay taxes on digital assets’ profits to attract crypto voters.
Leading political parties in South Korea are pledging crypto-related incentives to garner support from voters ahead of the country’s upcoming parliamentary elections. The opposition Democratic Party has promised to remove restrictions on domestic and international exchange-traded funds (ETFs) directly holding crypto tokens, including those based in the United States, following the approval of Bitcoin ETFs in January.
However, South Korea’s securities regulator cautioned against local distribution of these ETFs due to potential violations of domestic laws. “We’re going to allow the ETFs, whether domestic or overseas,” stated Hwanseok Choi of the Democratic Party, referencing the group’s manifesto.
Similarly, President Yoon Suk Yeol’s People Power Party aims to attract crypto voters by proposing a delay in taxes on digital assets’ profits, which are scheduled to take effect in 2025.
Government statistics reveal that nearly six million South Koreans traded crypto via registered exchanges in the first half of 2023, constituting 10% of the country’s population. Additionally, official disclosures indicate that 7% of election candidates possess cryptocurrencies.
Data from the Korea Securities Depository highlights that crypto users have invested over $200 million in shares of U.S.-listed firm MicroStrategy, known for its significant exposure to Bitcoin, leading some analysts to liken it to a “leveraged Bitcoin ETF.”
South Korea has been quite active in the crypto regulation market lately. The country’s upcoming Virtual Asset Users Protection Act will prohibit the use of undisclosed important information about crypto, market manipulation, and illegal trading, effective July 19.
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