Political campaigns in South Korea are taking advantage of the country’s booming crypto market to appeal to voters ahead of the parliamentary election. Both major political parties, President Yoon Suk Yeol’s People Power Party and the opposition Democratic Party, have included promises related to cryptocurrencies in their campaign platforms. The People Power Party has pledged to delay the implementation of a digital-asset tax, recognizing the importance of the crypto industry to voters. On the other hand, the Democratic Party is focused on lifting restrictions on exchange-traded funds (ETFs), including those holding US Bitcoin products. South Korea is looking to offer exposure to ETFs, with a policy specialist from the Democratic Party stating support for the inclusion of domestic and overseas ETFs.
The move to allow ETFs investing directly in Bitcoin gained traction in South Korea after the US approved such products in January, with these Bitcoin ETFs already accumulating around $57 billion in assets. However, South Korea’s securities regulator has expressed concerns that brokering these products locally might violate the law, creating confusion and impacting the market. The People Power Party’s manifesto does not directly address this controversy, but it promises to postpone planned taxes on crypto gains beyond the scheduled timeframe of 2025. South Koreans have actively participated in the recent crypto bull market, with the country known for its enthusiasm for various cryptocurrencies beyond Bitcoin. Upbit, the largest domestic crypto exchange, consistently ranks among the top global platforms in terms of trading volume.
Interestingly, even election candidates in South Korea have exposure to cryptocurrencies, with approximately 7% of them owning digital assets according to a report by Yonhap that analyzed their asset disclosures. The recent surge in the value of the crypto market has overshadowed past failures for many investors. South Korea is set to implement an investor-protection framework in July, with both political parties indicating their intention to pursue broader regulations for the industry. Stricter regulations for token listing on exchanges are set to be introduced, including the blocking of tokens that have been hacked. The country’s financial authorities are preparing to release guidelines for virtual asset trading support, expected to be published by the end of this month or early next month.
Both major political parties in South Korea are leveraging the country’s prominent crypto market to attract voters ahead of the parliamentary election. The People Power Party and the Democratic Party have included promises related to cryptocurrencies in their campaign platforms, with the former pledging to delay the implementation of a digital-asset tax and the latter focusing on lifting restrictions on ETFs. South Korea is looking to offer exposure to Bitcoin ETFs, with concerns raised by the securities regulator about brokering these products locally. Despite this, Upbit, the largest domestic crypto exchange in South Korea, continues to attract significant trading volume, with South Koreans actively participating in the crypto market beyond Bitcoin.
Approximately 7% of election candidates in South Korea own digital assets, indicating a growing interest in cryptocurrencies among politicians and the general population. The recent surge in the value of the crypto market has overshadowed past failures and highlighted the potential for significant gains. South Korea is set to implement stricter regulations for token listing on exchanges, with guidelines for virtual asset trading support expected to be released soon. The country’s financial authorities are focused on protecting investors and ensuring the market operates in a secure and transparent manner. Despite some concerns and regulatory challenges, the enthusiasm for cryptocurrencies in South Korea remains strong, with both major political parties recognizing the importance of the industry in shaping their campaign platforms.
