Catchy Campaign or Empty Promise? South Korean Party Tempts Voters with Access to US Spot Bitcoin ETFs

Political parties in South Korea are leveraging the cryptocurrency industry to attract potential voters as parliamentary elections approach. The opposition Democratic Party pledges to lift restrictions on various domestic and international crypto products, including digital assets and US exchange-traded funds (ETFs).

South Korean Political Parties Argue Over ETF Legality as Yoon Seok-yeol Promises Early Implementation of Digital Asset Tax

South Korean regulators express concerns about potential violations of domestic laws by ETFs, recently approved in the US. Democratic Party policy specialist Hwanseok Choi affirms the party's commitment to permitting both domestic and overseas ETFs, echoing their manifesto.

President Yoon Seok Yeol of the People Power Party aims to sway voters by promising to expedite the taxation on digital asset profits scheduled for 2025. Yeol seeks to gain control of the legislature from the progressive group led by the Democratic Party.

South Korea's crypto surge hits 6 million traders amid political influence; new regulations loom

Around six million South Koreans engaged in crypto trading on licensed exchanges in the first half of 2023, representing approximately 10% of the population. Notably, some election candidates hold cryptocurrency, indicating its growing influence.

South Koreans have invested approximately $200 million in MicroStrategy (MRST) shares, considered by analysts as a leveraged Bitcoin ETF due to the company's exposure to Bitcoin. Some are also involved in the US crypto futures ETF market.

Despite political promises, impending regulations on digital assets are looming. Financial authorities announce new guidelines for listing tokens on centralized exchanges, including prohibiting listings of cryptocurrencies involved in hacking incidents until investigations are concluded. Additionally, only digital assets with manuals or white papers will be permitted for listing.