The Stance of the South Korean Democratic Party and the People Power Party on Crypto Policy
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Elections are being held in South Korea today and the outcome of who emerges victorious will play a crucial role in influencing the regulatory environment for the crypto industry.
The two main political parties in South Korea are the Democratic Party of Korea (DPK) and the People Power Party (PPP) – as of December 2022, the Democratic Party is the largest in South Korea with around 4.85 million party members. Back then, crypto was also high on the agenda of presidential candidates in the 2022 South Korean election.
Today, South Koreans will vote for a new parliament in the mid-term referendum on President Yoon Suk Yeol’s government.
Both political parties have different stances on crypto regulation, affecting its implementation, taxation, and legality. The election outcome will impact investor sentiment and market dynamics, including the crypto market. Supportive policies can attract more investment in cryptocurrencies, while uncertainty or unfavorable policies can lead to market volatility.
South Korea is a significant player in the crypto space
South Korea is a significant player in the global crypto market. Changes in the regulatory framework or market dynamics can have ripple effects on the broader crypto ecosystem and influence trends and perceptions internationally.
Elections in South Korea are a crucial factor in shaping the regulatory landscape, market sentiment, and innovation within the crypto industry. Here is an overview of the position of South Korea’s two main political parties on crypto regulation courtesy of CryptoQuant.
Ruling Party in South Korea – PPP
The ruling party has shown its willingness to delay the implementation of digital asset taxation. It has been open to discussions and considerations regarding the timing and details of the implementation of digital asset taxation. The party plans to create administrative measures for digital assets and standardize listing criteria across all centralized exchanges to protect investors. The party will allow token launch for those that have the investor protection mechanisms in place.
Digital Asset Protection Bill Phase 2
This refers to legislative efforts to regulate and protect investors in the digital asset market in South Korea. The initiative is part of a broader effort by the South Korean government to create a legal framework for cryptocurrencies and related activities. The PPP will advance Phase 2 of the Digital Asset Investor Protection Bill, which may include various measures such as tightening regulations to prevent fraud and illegal activities in the digital asset market.
Opposition Party in South Korea – DPK
The Democratic Party has shown its willingness to remove restrictions on investments in US spot Bitcoin digital asset ETFs and add digital asset ETFs to ISAs for tax benefits. The opposition party has promised to increase taxation of digital assets from $1,85,000 to $37,000 for the tax-free range.
Other opposition proposals include merging profit and loss for five years as the standard for taxation. The party will initiate a business law for digital asset companies and establish a monitoring system to aggregate all order books for centralized exchanges (CEX) in South Korea.
