South Korean President Yoon Seok-yeol promises to bring the crypto industry to the forefront in the near future
On March 10, the People’s Power Party candidate Yoon Se-yeol won the South Korean presidential election. One of Yoon’s notable campaign policies is to focus on the cryptocurrency space and promote the local industry.
Not only Mr. Yin, but his opponent, Mr. Lee Jae-myung, has also launched a number of new policies, among which the cryptocurrency sector is prioritized.
Andus CEO Park Sung-jun said: “This is the result of the previous government’s repeated negative policies to limit the existence of the digital asset market. Cheers.”
Previously, the administration of outgoing President Moon Jae-in had maintained an ambiguous and somewhat restrained stance on the cryptocurrency space. That has rattled South Korea’s younger investor base.
In contrast, voter Yoon Sur Yeol is a supporter of cryptocurrencies. Therefore, experts believe that Mr. Yoon can lead the Korean cryptocurrency industry to flourish in the near future.
Former prosecutor Yin, 61, has pledged to raise income taxes on bitcoin and other altcoins from $2,000 to $40,000. This is considered one of the best tax-free rates in the world. Additionally, Yin announced that he will review the ban on issuing ICOs to the market.
If the ICO ban is lifted, businesses in South Korea will be able to mine and sell cryptocurrencies to raise funds. Previously, South Korea’s financial regulator had banned ICOs since 2017 due to concerns about speculation and fraud. However, for the same reason, lifting the ban also faces many difficulties.
To strengthen legitimacy, Yin promised to create a “Digital Property Law.” Basically, South Korean authorities will focus on recovering funds lost due to illegal and fraudulent transactions.
In addition, Mr. Yin proposed to re-approve ICOs as exchange services. Fundraising will be overseen by a reputable and government-licensed exchange.
However, some believe that ICOs are not as important in South Korea as they once were. “Currently, there is no reason for companies to conduct ICOs. Instead, they will sell NFTs to raise more funds,” said Kim Hyoung-joong, president of the Korea Blockchain Fintech Association.
Meanwhile, South Korea may continue to ban games. Lee Young-whan, founder and CEO of blockchain startup Ubuntu Custody, said he is hopeful for the new government.
In a sharing with Forkast, Lee said that many members of the blockchain space belong to groups supporting South Korea’s new presidential campaign. Therefore, there may be favorable policies for the market in the short term.
“Regulators often introduce restrictions with no legal basis, killing the crypto industry. People who understand the issue are in Mr. Yoon’s campaign, so negative policies may be repealed,” Mr. Lee Young-hwan said.
Thailand lowers tax on digital assets
Finance Minister Arkhom Termpittayapaisith said the new rules will allow traders to receive refunds for annual tax losses on crypto investments. At the same time, transactions on authorized exchanges are exempt from the 7% VAT.
The tax exemption will take effect from April 2022 to December 2023, covering transactions in central bank-issued cryptocurrencies.
Earlier, authorities in the Southeast Asian country also scrapped plans to impose a 15 percent tax on cryptocurrencies.
Digital assets in Thailand have grown strongly over the past year, growing from 170,000 accounts at the beginning of the year to 2 million trading accounts by the end of the year in 2021 alone.
On January 25, the People’s Bank of China, the China Securities Regulatory Commission and the Ministry of Finance announced plans to develop regulatory guidelines for digital currency payments.
Bitcoin is the most popular cryptocurrency in the “Golden Palace” country.
In addition, the Thai government has approved tax incentives for direct and indirect investments in start-up projects. Investors who have pledged to work with the startup for at least 2 years will be tax-free for 10 years until June 2032.
Vietnam ranks among the top ten in the world in terms of the number of cryptocurrency holders. The pandemic has attracted investment in Vietnamese cryptocurrencies. Currently, about 6 million Vietnamese own digital assets. In an interview with Techinasia, investor Nam Nguyen (25) said he joined…