South Korean National Assembly Halts Crypto Regulations Amid Political Turmoil

According to ShibDaily, the South Korean National Assembly has temporarily suspended all work related to cryptocurrency regulations due to the ongoing political crisis involving martial law and impeachment proceedings against President Yoon Suk Yeol. This decision follows a brief period of martial law declared by the president, which has left the crypto sector in a state of uncertainty. Before the suspension, the National Assembly had approved a legal amendment to delay the implementation of the crypto tax until January 2027. This amendment was crucial as it prevented the tax from being enforced on January 1, 2025, as initially planned. A National Assembly official commented on the situation, indicating that all crypto-related policies have been put on hold due to the impeachment issue, making it unlikely for any votes on these matters to occur soon. Discussions on crypto regulations are expected to resume no earlier than the first half of 2025, with bills concerning virtual assets facing indefinite delays until the political situation stabilizes. Despite the halt in regulatory progress, there remains some optimism within the industry. The Financial Services Commission (FSC) has completed comprehensive guidelines for corporate cryptocurrency accounts, developed in collaboration with the Virtual Asset Committee, and plans to implement them later this month. However, concerns are growing that domestic blockchain and virtual asset companies, along with investors, might consider relocating abroad due to the ongoing political instability. This article is intended for informational purposes only and should not be considered as financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.