South Korean Political Party Eyes Crypto Revolution with Bitcoin ETF and Tax Breaks

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The People Power Party in South Korea is contemplating significant moves in the cryptocurrency space, including launching a Bitcoin spot ETF and a tax deferral for virtual assets. These proposals are part of the party’s general election pledges to capitalize on South Korean people’s growing interest in the crypto sector.

Bitcoin Spot ETF Promotion

The People Power Party’s considerations include establishing a ‘Digital Asset Promotion Committee’ and exploring measures such as Initial Exchange Offerings (IEOs), corporate virtual asset investments, and Bitcoin spot ETFs. The party recognizes the potential of virtual assets and aims to elevate the role of the proposed committee to a level similar to the ‘Securities and Futures Committee.’

As reported by News1, the People Power Party aims to “promote the entire virtual asset industry” and “establish a ‘digital asset promotion committee’” with a focus on proposing laws and imposing sanctions.

The PPP is also pledging the people with corporate investments and IEOs in their election promotions. In a move to align with the evolving crypto landscape, the party is actively reviewing the possibility of allowing corporations to invest in virtual assets. Initially focusing on financial investment companies, the plan suggests a gradual expansion to include banks and insurance companies. Additionally, the introduction of IEOs, seen as a safety measure, is on the agenda.

Tax Deferral Proposal

In a bid to solidify the foundation for virtual asset taxation, the People Power Party is contemplating a minimum two-year tax deferral for virtual assets. The party emphasizes the need for a well-established system, proposing the ‘Virtual Asset User Protection Act’ as a crucial step to facilitate taxation. 

This declaration aligns with the broader trend of the government and the National Assembly addressing regulatory aspects of the crypto market.

According to the Herald Business Daily, the party is exploring a “virtual asset taxation deferral” for a minimum of two years as part of its general election promises, aligning with the broader trend of easing financial regulations in the country.

The People Power Party aims to resolve policy discrepancies related to virtual assets, including the classification of virtual asset exchanges. There’s also consideration for a virtual asset blind trust for National Assembly members and high-ranking public officials, reflecting a comprehensive approach to cryptocurrency governance.