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Tim Alper
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Tim Alper
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Senior figures in the South Korean Democratic Party (DP), the largest party in the National Assembly, have floated plans to “include Bitcoin” in a portfolio of strategic reserves.
Per the media outlet Sijang Kyungjae, the DP says it wants a “proactive response” from Seoul following Washington’s recent decision to launch a crypto reserve fund.
Strategic Reserves: Korean Parties Ready to Make BTC Move?
At a policy seminar that focused on US President Donald Trump’s crypto reserves policies – and South Korea’s response – key DP policymakers Kim Min-seok and Kim Byeong-wook said Seoul’s current stance on crypto adoption was “backward.”
https://twitter.com/JoongAngDaily/status/1898952996261605679
Kim Byung-wook said that “virtual assets are not legally or socially recognized” in South Korea “due to vague anxieties.” He continued:
“While other advanced countries are making efforts to create various virtual currency systems and ecosystems, in our case, while the market is active, the system is unprepared. Our system is backward; even negligent.”
Kim Byung-wook claimed that domestic crypto traders have transacted some 130 trillion won (over $89 billion) worth of assets on “foreign crypto exchanges.” The policymaker said:
“Young [South Korean] people are leaving our market and [taking their money] abroad, where they are given investment opportunities that do not exist in South Korea. I think that responsible politicians should be discussing this matter.”
The DP’s policymakers and consultants went on to speak of the “need to review whether it is possible to include some Bitcoin in the foreign exchange reserve portfolio.”
The portfolio in question is currently co-managed by the central Bank of Korea.
https://twitter.com/cryptonews/status/1898949630983065783
Experts Agree?
Experts speaking at the same DP event concurred. Professor Seo Eun-sook, of the Department of Economics and Finance at Sangmyung University, said that Seoul would stand to benefit from crypto adoption. Seo said:
“If we diversify the range of currencies we can invest in, that will make it easier for foreign capital to flow into the country. That could lead to a job creation and more entrepreneurship.”
The Professor added that other nations were also looking to use stablecoins to develop their financial markets.
Seo said: “It is time for us to start using stablecoins as well.”
Regulators were also in attendance. Kim Sung-jin, the Financial Services Commission (FSC)’s crypto lead, said that the FSC also believed that more work on crypto policy was “absolutely necessary.”
https://twitter.com/Reuters/status/1898919266201534883
Lawmakers Call for Crypto Tax Parity
Elsewhere, there was further crypto-related policy talk from DP officials. The DP lawmaker Min Byoung-dug, a member of the National Assembly’s Political Affairs Committee, held a seminar titled “Policy Suggestions for Crypto Korea” on the same day.
Min and assorted experts used the opportunity to call for tax parity between South Korean stock traders and crypto investors.
“It is very noteworthy that citizens aged 20-39 are more interested in digital assets than they are in the financial markets. We need to consider treating the digital assets market equally with the existing financial market in all areas. That includes taxes.”
Democratic Party lawmaker Min Byeong-deok
Experts speaking at Min’s event “unanimously agreed” on the need to launch a tax system for crypto trading profits.
They also talked about allowing financial providers to launch Bitcoin spot ETFs. And they also spoke about reviving the Busan Blockchain Regulatory Free Zone project.
The latter is a special zone originally earmarked as a sandbox for domestic blockchain technology projects.
However, the project has become bogged down in red tape, with previous governments essentially forcing operators to work on private blockchains, rather than popular public networks.
When Could South Korea Go to The Polls?
South Korean presidential elections were originally scheduled for 2027. But following President Yoon Suk-yeol’s impeachment trial, many expect Yoon to either resign or be removed by the Constitutional Court.
If this were to occur, it would trigger an election within 60 days of Yoon leaving office. Yoon’s fate is not yet sealed. But most observers expect elections to take place sooner rather than later.
In recent days, the former Justice Minister and ex-leader of the People Power Party (PPP) Han Dong-hoon unveiled a slew of pro-crypto policies.
These include plans to grant financial operators the right to launch Bitcoin ETFs and “deregulate” the South Korean crypto sector.
Political observers expect Han to be one of the leading candidates for the PPP nomination. They also expect him to square off against the DP’s leader Lee Jae-myung, who narrowly lost the 2022 election to Yoon.
