Introduction:

Ahead of the upcoming parliamentary election in South Korea, political parties are tapping into the country’s thriving crypto market to win over voters. Both major parties, President Yoon Suk Yeol’s People Power Party and the opposition Democratic Party, have integrated crypto-related proposals into their campaign agendas.

Campaign Promises:

The People Power Party aims to postpone the implementation of a digital-asset tax, acknowledging the significance of the crypto industry to voters. Conversely, the Democratic Party is focused on easing restrictions on exchange-traded funds (ETFs), including those linked to US Bitcoin products.

Push for ETF Access:

A policy specialist from the Democratic Party emphasized their support for including both domestic and international ETFs, following the US's approval of Bitcoin-linked ETFs earlier this year, which have already amassed significant assets.

Regulatory Concerns:

Despite growing interest, South Korea's securities regulator has expressed apprehension that facilitating these products locally could breach laws, potentially causing market confusion. The People Power Party's manifesto does not directly address this issue but pledges to postpone proposed taxes on crypto gains.

South Korean Crypto Enthusiasm:

South Koreans have actively engaged in the recent crypto surge, with notable investments in various cryptocurrencies beyond Bitcoin. The country's largest domestic exchange, Upbit, consistently ranks among the top global platforms by trading volume.

Candidate Involvement:

Interestingly, around 7% of election candidates in South Korea reportedly own digital assets, reflecting the widespread involvement in the crypto market among political figures.

Regulatory Developments:

In response to the booming crypto market, South Korea plans to introduce stricter regulations for token listings on exchanges, emphasizing investor protection. Financial authorities are expected to release guidelines for virtual asset trading support, including criteria for listing and exceptions for overseas assets.

Conclusion:

As South Korea embraces the crypto phenomenon, political campaigns are incorporating crypto-friendly policies to appeal to voters. However, regulatory concerns persist, prompting authorities to develop stricter guidelines to safeguard investors and maintain market integrity.