South Korean Political Party Envisions Crypto Revolution through Bitcoin ETF and Tax Incentives

The People Power Party in South Korea is considering making significant moves in the cryptocurrency industry as part of its general election pledges. These moves include the launch of a Bitcoin spot ETF and the implementation of a tax deferral for virtual assets. The party aims to capitalize on the growing interest in cryptocurrencies among the South Korean population.

To promote the adoption of cryptocurrencies, the People Power Party is looking into establishing a ‘Digital Asset Promotion Committee’. This committee would explore various measures such as Initial Exchange Offerings (IEOs), corporate investments in virtual assets, and the creation of a Bitcoin spot ETF. The party recognizes the potential of virtual assets and wants to elevate the role of the proposed committee to a level similar to the ‘Securities and Futures Committee’.

The party’s goal is to “promote the entire virtual asset industry” and propose laws and sanctions through the digital asset promotion committee. They also plan to encourage corporate investments and IEOs as part of their election campaign. To adapt to the changing crypto landscape, the party is considering allowing corporations, starting with financial investment companies, to invest in virtual assets. They also see IEOs as a safety measure and are exploring their introduction.

In terms of taxation, the People Power Party is considering a minimum two-year tax deferral for virtual assets to establish a solid foundation for virtual asset taxation. They believe that a well-established system, such as the proposed ‘Virtual Asset User Protection Act’, is necessary to facilitate taxation. This aligns with the government’s and the National Assembly’s focus on addressing regulatory aspects of the crypto market.

The party aims to address policy discrepancies related to virtual assets, including the classification of virtual asset exchanges. They are also considering the implementation of a virtual asset blind trust for National Assembly members and high-ranking public officials, showing a comprehensive approach to cryptocurrency governance.

Tags: Crypto Regulations