South
Korea’s New President Elect to Deregulate Crypto Industry
Across
the globe the rapidly growing popularity of cryptocurrency has governments and
officials suddenly scrambling to formulate regulations in their respective
countries to protect the young and naïve investors. In the US, it is estimated that approximately 16% of adult Americans or 40 million people have
invested in the digital currency. Analytics further reveal that 43 per cent of
the investors are men aged between 18 and 29 years. Somehow, the global
investment trends echo similar sentiments in other nations as well. Let us take
the example of South Korea.
The
new President Elect of South Korea wooed young voters aged between 20-30 years
of age to vote for him in the country’s most closely fought presidential
election on the back of his firm commitment to deregulate crypto investment and
easing of the crypto tax structure to reduce the tax burden in the country to
please his young voters.
It
is said that South Korean voters have elected a crypto friendly President. Yoon
Suk-yeol of the Conservative People Power Party has promised to deregulate the
crypto industry and introduce favorable tax laws for crypto investors in the
country.
“To
realize the unlimited potential of the virtual asset market, we must overhaul
regulations that are far from reality and unreasonable,” the elected President
said.
South
Korean voters elected Yoon Suk-Yeol of the Conservative People Power Party as
their new President in the country’s most closely fought presidential election ever
last Wednesday. Earlier Yoon had served as South Korea’s prosecutor general from
2019 and 2021 under President Moon Jae-in.
On
the occasion of a virtual asset forum in January, he had promised to
“deregulate” the crypto industry in the country to further promote its growth,
according to the Korean media sources. Speaking on the virtual asset forum he
had said:
‘To
realize the unlimited potential of the virtual asset market, we must overhaul
regulations that are far from reality and unreasonable.’
Yonhap
News sources reported that Yoon Suk-Yeol had further elaborated that the crypto
industry should be allowed to operate without regulations unless they have been
explicitly prohibited to do so.
“We must shift to a negative regulation system
to ensure at least the virtual asset market has no worries,” Yoon reportedly
said.
The
South Korean President Elect also pledged to ease the tax burden for crypto
investors. He suggested raising the tax threshold for cryptocurrency
investments from the existing 2.5 million won to 50 million won.
He
also called for measures that allow the crypto industry to produce unicorns.
Yoon also promised to introduce a law on digital assets and lay the groundwork
for initial exchange offerings (IEOs) to embolden the crypto industry.
Yoon’s
promises are popular among the South Korean voters in their 20s and 30s who are
fascinated with the cryptocurrency. Earlier, in January The President Elect had
reiterated:
‘I will create an environment where virtual
asset investors can invest with confidence.’
Commenting on Yoon’s election win, the Korea Blockchain Association said:
“We sincerely
hope that President-elect Yoon Suk-yeol will be able to lead the promising
future of Korea and the Korean blockchain ecosystem.”
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