South Korea Has A New President – And He Is A Crypto Supporter
Yoon Suk-Yeol, a conservative presidential candidate, has been formally chosen as South Korea’s next president.
Yoon of the People Power Party beat his politically progressive opponent, Lee Jae-Myung, by less than 1%, according to press sources.
South Korea’s election conversation was dominated by cryptocurrencies, with both candidates launching NFTs tied to their campaigns.
They have gained favour among the younger, more crypto-enthusiastic public due to their pro-crypto attitude, which contrasts with previous President Moon Jae-ban In’s position on bitcoin exchanges.
Yoon campaigned on the promise to deregulating the bitcoin industry. In January, he claimed at a cryptocurrency conference that laws “far from reality and ludicrous” must be amended in order to “realise the virtual asset market’s endless potential.”
Yoon has stated his intention to recruit and establish cryptocurrency “unicorns,” or startup firms valued at at least $1 billion. He also vowed to raising the proposed capital gains tax rate prior to its implementation.
Additionally, he said that he may reconsider a 2017 prohibition on initial coin offerings (ICOs) and reintroduce the contentious fundraising technique.
A business body may use ICOs to acquire capital via the minting and sale of cryptocurrencies; however, ICOs are plagued with fraud, with coin issuers vanishing after the transaction is complete, wreaking havoc on the blockchain and bitcoin in general.
Several of South Korea’s largest entertainment and gaming companies expressed interest in cryptocurrencies at their annual shareholder meetings, promising to develop non-fungible tokens (NFT) or play-to-earn games.
In South Korea, cryptocurrency and exchanges are not yet recognised as “legal money and exchanges” due to the lack of a robust regulatory framework. Bitcoin transactions are now tax-free in South Korea since it is neither cash nor a financial asset.
According to the Ministry of Strategy and Finance, the South Korean government is considering imposing a tax on cryptocurrency transactions and plans to adopt a framework by 2022.
The Financial Intelligence Unit published its newest assessment of South Korea’s almost $46 billion bitcoin market.
The KRW-to-crypto market accounted for little over 27% of the worldwide market, despite the global market average of over 60%.
In South Korea, cryptocurrency transactions are worth an average of $9.4 billion every day. According to a recent poll, crypto investors in their 30s, 40s, and 20s account for 31% of the population.
South Korea ranks 16th in terms of worldwide cryptocurrency usage, with approximately 2 million people, or 3.8 percent of the country’s 55.7 million total population, holding some kind of cryptocurrency.
Meanwhile, Yoon has pledged to increasing the capital gains tax exemption on Bitcoin and other cryptocurrencies from $2,000 to $40,000, creating one of the world’s most generous tax-free allowances.