The recent revelation that South Korea’s future president plans to promote the country’s crypto business is great news, especially given the country’s economic power, both regionally and worldwide.
President Yoon Suk-Yeol intends to increase the current cryptocurrency tax threshold from $2,000 to over $40,000. In a country where Koreans spent over $43 billion in crypto assets last year, incumbent President Moon Jae-in missed an opportunity to move the country ahead with a more positive crypto policy.
Younger investors, for example, submitted a number of petitions in April 2021, claiming that crypto assets were taxed at a lower rate than equities.
Now that they’ve won, their voices are being heard, which I think is fantastic news for the crypto sector as a whole, as well as for this new generation of investors. However, as someone who has been following the Korean market since 2017, I know that while the findings from Yoon’s Presidential Transition Committee are welcome, what counts most is what occurs when the new president takes office on May 10.
There’s a chance the incoming administration will limit access to ICOs, IEOs, and STOs to accredited investors with a specific level of income. The announcement of a new Basic Digital Asset Law, which will allow for the recovery of cash lost as a result of unlawful trades and frauds, is certainly welcome.
However, a balance must be struck so that the younger generation of investors in their 20s and 30s, who account for about 36% of the market, feel invested in the new system.
Play-to-win games are still illegal, and there are no plans to change that. So it’s a little ironic that the latest $620 million Axie Infinity breach was allegedly carried out under the North Korean government’s auspices. While South Korea and the United States are aiming to collaborate more closely on cybercrime, there is a possibility that the United States will try to compel South Korea to adopt a more heavily regulated approach to cryptocurrency that is more in line with evolving US policy.
Will the promise of a burgeoning NFT market come true?
In the future, the NFT market in South Korea will expand. This creates an opening for the next government to take a more constructive stance. The Financial Services Commission (FSC) is apparently working on implementing NFT rules, however this has not yet occurred. The intricacy of using exchanges with diverse travel rule systems is another possible source of discontent among investors.
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