Yoon Suk-Yeol, a conservative presidential candidate, has been sworn in as South Korea’s new president.
Yoon of the People Power Party narrowly defeated Lee Jae-Myung of the Democratic Party by less than 1%.
In Korea, the election conversation was dominated by cryptocurrencies, with both candidates launching NFTs tied to their campaigns.
Because of their pro-crypto stances, which contrast with former president Moon Jae-ban In’s stance on bitcoin exchanges, they have gained favor among the younger, more crypto-enthusiastic populace.
Bitcoin-Friendly President Of South Korea
Yoon vowed to de-regulate the bitcoin market during his campaign. At a crypto conference in January, he stated that laws that are “far from reality and ludicrous” need to be altered in order to “realize the infinite potential of the virtual asset market.”
Yoon has stated that one of his goals is to find and construct cryptocurrency “unicorns,” or startups worth $1 billion or more. He also pledged to raise the projected capital gains tax rate before it takes effect.
In addition, he suggested that he might revisit a 2017 ban on initial coin offerings (ICOs) and revive the controversial fundraising mechanism.
A corporate entity may utilize ICOs to raise funding by minting and selling cryptocurrencies; however, ICOs are plagued with fraud, with coin issuers disappearing after the transaction is completed, causing a detrimental effect on the blockchain and cryptocurrency in general.
During their annual shareholder meetings, several of South Korea’s major entertainment and gaming firms showed interest in cryptocurrencies, pledging to build non-fungible tokens (NFT) or play-to-earn games.
Proposed Crypto-Market Taxation
Cryptocurrencies and exchanges are not yet recognized as “legal currency and exchanges” in South Korea since they are not subject to a solid regulatory framework.
Because bitcoin is neither cash nor a financial asset in South Korea, cryptocurrency transactions are now tax-free.
As per the Ministry of Strategy and Finance, the South Korean government is contemplating levying a tax on cryptocurrency transactions and intends to implement a taxation framework in 2022.
SoKor’s $46 Billion Crypto Market
In its latest estimate of the nearly $46 billion bitcoin market in South Korea, the Financial Intelligence Unit has presented its findings.
KRW-to-crypto market accounted for barely 27% of the global market, although the global market average is almost 60%.
Cryptocurrency trades in South Korea are worth an average of $9.4 billion per day.
Local crypto investors in their 30s, 40s and 20s make up 31% of the population, according to a recent survey.
No. 16 In The World
South Korea ranks 16th in global cryptocurrency adoption, with nearly 2 million individuals, or 3.8% of its total population of 55.7 million, owning some crypto-asset.
Meanwhile, Yoon has committed to increase the capital gains tax threshold on Bitcoin and other cryptocurrencies from $2,000 to $40,000, establishing one of the most generous tax-free allowances in the world.
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