The new president of South Korea Yoon Suk-yeol, who is considered a ‘crypto enthusiast,’ is promising big things for the crypto sector. Suk-yeol, who is the president-elect of the SE Asia nation, has promised to make the country crypto-friendly.
Yoon Suk-yeol and Crypto
Before he became president, Suk-yeol worked as the country’s top prosecutor. In 2017, he had plans to make ICOs completely legal in the country. However, those plans did not materialize. South Korea ended up making all ICOs illegal in the country. One reason for this might have been the huge number of scams that had pervaded the ICO space at the time.
How He Could Impact the Crypto Sector
According to a Nikkei report, Suk-yeol’s presidency could lead to tax exemptions for crypto gains, if those gains do not exceed $40,000. Reports indicate that crypto gains could end up being treated like stock trading gains.
Throughout South Korea, crypto enthusiasts have welcomed Suk-yeol’s ascendance to the presidency. They are enthusiastic about what his win could mean for the crypto industry. Many are hopeful that his win could lead to the elimination of barriers to crypto adoption in the country.
South Korea’s Tough Laws
The law in South Korea is quite tough when it comes to crypto trading. Because of its proximity to North Korea, there has always been suspicion amongst regulators that North Korea could use crypto to launder money. As a result, the nation has implemented some of the toughest laws when it comes to the crypto sector. When it has not banned the sector, the tough rules have meant that most crypto-based businesses had to move out of the country to nations like Singapore to raise funds.
According to the nation’s financial regulator, the nation’s crypto sector is valued at 55.2 trillion won, or around $44 billion. The regulator also found that over 15.2 million people in the country have crypto trading accounts with 24 brokers operating in the country. Of these, 5.6 million trade.
Crypto and Politics
The current presidential election could present the first time the leader of a large economy has won the election based on his stance on crypto. While it is not the only factor behind Suk-yeol’s victory, it played a role, since his opponent took a more conservative stance when it comes to crypto regulation. With such a huge chunk of the population trading in crypto, it was only a matter of time before crypto played a role in election outcomes.
It is worth pointing out that his victory was razor-thin, with less than a percentage point. He received overwhelming support from young socially and economically disaffected men, who are also more likely to be crypto traders, according to analysts.
Whether the president-elect keeps his promises or not is another issue altogether. For instance, the Nikkei report points out that he does not have any financial expertise. However, he will be working with the nation’s top experts, who will provide him with guidance on how to treat the crypto sector.
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