South Korea Aims for Ambitious Crypto Strategy Including Bitcoin ETFs, IEOs, and Tax Deferrals

South Korea’s People Power Party (PPP) is planning to make significant moves in the cryptocurrency sector to tap into the growing interest of the public. One of their considerations is introducing a Bitcoin spot ETF and exploring a tax deferral for virtual assets. They also plan to establish a ‘Digital Asset Promotion Committee’ and explore measures like Initial Exchange Offerings (IEOs).

The PPP aims to promote the entire virtual asset industry and elevate the role of the proposed committee to a level similar to the ‘Securities and Futures Committee’. They will propose laws and impose sanctions to regulate the industry effectively. Additionally, the party plans to allow corporations, starting with financial investment companies, to enter the virtual asset arena. They will gradually expand this initiative to include banks and insurance companies.

To strengthen the foundation for virtual asset taxation, the PPP is considering a minimum two-year tax deferral for virtual assets. This move aims to establish a well-established system and proposes the ‘Virtual Asset User Protection Act’ as a crucial step towards smoother taxation processes. It aligns with the broader trend of easing financial regulations in the country.

The party’s agenda also extends to addressing policy discrepancies related to virtual assets, including the classification of virtual asset exchanges. They are considering a virtual asset blind trust for National Assembly members and high-ranking public officials to ensure robust governance in the cryptocurrency world.

Overall, the PPP’s plans reflect their commitment to harnessing the potential of the cryptocurrency sector and implementing effective regulations and governance.