Potential Easing of Crypto Regulations in South Korea Post-Elections

The government formed after the upcoming April elections in South Korea may ease certain regulations on digital assets, according to DL News.

Journalists noted that the two main political parties — the People Power Party and the Democratic Party of Korea — are considering the approval of spot Bitcoin ETFs.

Such plans diverge from the stance of the FSC, which warned about the inaccessibility of these instruments to retail clients. On January 11, the agency reaffirmed its commitment to a rule that restricts the launch of exchange-traded products based on digital gold.

Among other proposals is the postponement of the implementation of cryptocurrency tax policy by at least two years.

The People Power Party is the initiator. Its representatives believe additional time is needed for more thorough preparation for the new fiscal regime.

According to the publication, the new government may also consider other measures to ensure the protection of retail clients.

Statistics show that in 2023, there were 16,000 reports of cryptocurrency-related crimes, marking a 49% increase over the year.

Journalists identified the Floki Inu project as a potential source of future problems. They recalled the ban on the meme token’s advertising in the UK and a notice from Hong Kong regulators about associated risks.

Floki Inu is one of the sponsors of the table tennis championship in Busan, South Korea, as noted by DL News.

In June 2023, the South Korean parliament passed a law on the protection of digital asset users.

The document consolidated 19 different bills related to cryptocurrencies. It introduces the concept of “digital assets” and defines liability for offenses such as insider trading, market manipulation, and unfair trading practices.