The election of Yoon Suk-yeol as the president of South Korea will have far-reaching impacts on the crypto industry in South Korea. This particular election, which was tagged the first crypto election by some analysts, pitted the winner against the ruling party’s Lee Jae-Myung.
Interestingly, both contestants made crypto-friendly promises in the quest to win over the votes of the younger generation of South Koreans who are crypto savvy and love technology.
A Radical Departure from Past Government Policy On Crypto
According to a report by Forkast, Yoon, during the campaign leading to the election promised to institutionalize digital assets in the country through benign policies that will ensure that the local industry thrives.
This is a radical departure from the policy of the past government that never made its policy towards cryptocurrencies explicit but rather sent mostly negative signals through stifling cryptocurrency policies. These created the impression that cryptocurrencies should not be supported in the country.
A Sigh of Relief for Korean Crypto space
Yoon, the pro-crypto winner of the South Korean presidential election, promised to make cryptocurrencies tax-free with regards to capital gains. This is similar to the country’s laws regarding stocks. It is expected that the policy will give the industry the needed boost to thrive.
Yoon, who was a prosecutor, promised to initiate what he called Basic Digital Assets Law, which will lay emphasis on the safe use of digital currencies. This law will also help in the recovery of lost funds through investment schemes that don’t deliver what they promised.
With positive outlooks, especially among the younger populace who want the crypto industry to thrive, Yoon’s victory at the polls comes with expectations of results. According to Chung Seung-mo, a crypto user in South Korea.
“I look forward to seeing the new president lead market growth through mixing regulations in a new direction of policies, where investments in cryptocurrencies are recognized as real investment measures, just like stock investments.”
Backing for The Korean Crypto Industry
In an unprecedented move, the president-elect is proposing protection through industry-specific insurance policies that cover the risks associated with industry hazards such as hacks, system errors, code errors, frauds, and other activities of malicious players that could affect the growth of the industry.
Kim Hyoung-Joong, who is the president of the Society of Fintech Blockchain said that the crypto and blockchain space is already reacting to the victory of the pro-crypto politician. According to him:
“The DeFi market [in Korea] has become very active and the NFT market is very hot. The decentralized autonomous organization (DAO) market is also waking up,”
Yoon is also proposing the reactivation of ICOs that was banned by Korea’s financial regulator in 2017. However, this time, it will be in the form of initial exchange offerings (IEOs) that are coordinated by licensed exchanges.
With Yoon’s victory, the South Korean crypto community is poised to have not just a much-needed relief, but growth.