South Korean President Yoon Seok-yeol promises to bring the crypto industry to the forefront in the near future
On March 10, the People’s Power Party candidate Yoon Se-yeol won the South Korean presidential election. One of Yoon’s notable campaign policies is to focus on the cryptocurrency space and promote the local industry.
Not only Mr. Yin, but his opponent, Mr. Lee Jae-myung, has also launched a number of new policies, among which the cryptocurrency sector is prioritized.
Andus CEO Park Sung-jun said: “This is the result of the previous government’s repeated negative policies to limit the existence of the digital asset market. Cheers.”
Previously, the administration of outgoing President Moon Jae-in had maintained an ambiguous and somewhat restrained stance on the cryptocurrency space. That has rattled South Korea’s younger investor base.
In contrast, voter Yoon Sur Yeol is a supporter of cryptocurrencies. Therefore, experts believe that Mr. Yoon can lead the Korean cryptocurrency industry to flourish in the near future.
Former prosecutor Yin, 61, has pledged to raise income taxes on bitcoin and other altcoins from $2,000 to $40,000. This is considered one of the best tax-free rates in the world. Additionally, Yin announced that he will review the ban on issuing ICOs to the market.
If the ICO ban is lifted, businesses in South Korea will be able to mine and sell cryptocurrencies to raise funds. Previously, South Korea’s financial regulator had banned ICOs since 2017 due to concerns about speculation and fraud. However, for the same reason, lifting the ban also faces many difficulties.
To strengthen legitimacy, Yin promised to create a “Digital Property Law.” Basically, South Korean authorities will focus on recovering funds lost due to illegal and fraudulent transactions.
In addition, Mr. Yin proposed to re-approve ICOs as exchange services. Fundraising will be overseen by a reputable and government-licensed exchange.
However, some believe that ICOs are not as important in South Korea as they once were. “Currently, there is no reason for companies to conduct ICOs. Instead, they will sell NFTs to raise more funds,” said Kim Hyoung-joong, president of the Korea Blockchain Fintech Association.
Meanwhile, South Korea may continue to ban games. Lee Young-whan, founder and CEO of blockchain startup Ubuntu Custody, said he is hopeful for the new government.
Mr. Lee shared with Forkast that many members of the blockchain space are supporting South Korea’s new presidential campaign. Therefore, there may be favorable policies for the market in the short term.
“Regulators often introduce restrictions that have no legal basis, killing the crypto industry. People who understand the issue are in Mr. Yoon’s campaign, so negative policies may be repealed,” Mr. Lee Young-hwan said.