South Korea’s ruling People Power Party to Embrace Crypto with Proposed Policies
South Korea’s ruling People Power Party is considering allowing spot bitcoin exchange-traded funds (ETF) as part of its campaign proposals for the forthcoming general election in April. The party also plans to review legislative measures to approve other cryptocurrency-associated investment products cleared in the U.S.
Moreover, the party aims to gradually remove the country’s restrictions on institutional investments in cryptocurrencies and initial exchange offerings (IEO). It wants to prioritize investment firms over banks or insurance companies, emphasizing the need to safeguard user funds.
To strengthen its position on digital assets, the party suggests the creation of a “Digital Asset Promotion Committee”. This committee would have sufficient authority to propose laws and enforce sanctions related to digital assets.
In a bid to gain support from the younger population, the party is also considering postponing the taxation on crypto gains from 2025 to 2027. According to the National Tax Agency, South Koreans in their 20s and 30s make up over 80% of cryptocurrency holders in the country as of September 2023.
These proposed policies are aimed at appealing to South Korean citizens in their 20s and 30s, who are heavily involved in the cryptocurrency market. The People Power Party hopes that by embracing digital assets, it can secure the support of a significant portion of the population in the upcoming general election.
Analyst comment
Positive news. The market is likely to see increased interest and investment in cryptocurrencies in South Korea. The proposed policies will attract younger investors and potentially lead to the growth of the cryptocurrency market.
