South Korea’s ruling and opposition parties have announced a series of campaign promises focused on cryptocurrency and blockchain technology ahead of the national elections scheduled for April 10. This development highlights the increasing role of digital assets in political agendas, aiming to capture the interest of the country’s younger electorate, which has shown a significant inclination towards crypto trading.
Pledges to foster the cryptocurrency sector
The ruling People Power Party has taken a bold step in promising to explore avenues for allowing spot Bitcoin exchange-traded funds (ETFs), a move that could potentially open the market to a wider range of investors. The party’s agenda includes introducing spot Bitcoin ETFs and examining legislative measures to approve other cryptocurrency-related investment products that have received approval in the United States. In an effort to further boost the digital asset market, the party plans to consider lifting the current ban on institutional investment in cryptocurrencies and initial exchange offerings (IEOs), starting with investment firms before possibly extending this to banks and insurance companies.
In addition to these market-oriented initiatives, the People Power Party said it is committed to creating a “Digital Asset Promotion Committee.” This body would wield the authority to propose laws and implement sanctions concerning digital assets, aiming to establish a robust regulatory framework that prioritizes the sector’s regulation ahead of imposing taxation on crypto gains. The party has indicated a potential delay in the crypto gains tax, initially scheduled for January 2025, possibly pushing it to 2027 to allow adequate time for establishing the necessary regulatory infrastructure.
Opposition aligns with crypto promotion
Echoing the ruling party’s interest in digital assets, the Democratic Party has also signaled its support for the crypto sector by promising to enable the purchase of spot Bitcoin ETFs by investors. This pledge is part of a broader proposal expected to be fully unveiled, aimed at institutionalizing and revitalizing the cryptocurrency sector in South Korea. Such bipartisan support for cryptocurrency initiatives highlights the recognition of digital assets as a significant issue in the forthcoming election, reflecting the substantial interest of the electorate, particularly among younger voters.
The electoral significance of cryptocurrency
The focus on cryptocurrency by both major political parties in South Korea reflects an understanding of the sector’s appeal to the country’s youth, who have been active participants in the crypto trading space. This demographic’s engagement with digital assets has remained high despite setbacks such as the collapse of the Terra blockchain, which led to a series of regulatory measures perceived as a crackdown on the industry. However, the mood around cryptocurrency has been gradually improving, with both parties now seemingly committed to fostering a more supportive regulatory and investment environment for digital assets.
As South Korea heads toward its national elections, the emphasis on cryptocurrency in the campaign promises of both the People Power Party and the Democratic Party showcases the strategic importance of digital assets in the nation’s political and economic discourse. These pledges aim to appeal to a key voter demographic and signal a potential shift towards more progressive policies in the management and regulation of the cryptocurrency sector in South Korea.
