As the upcoming elections draw near, South Korea is witnessing a growing acceptance of pro-crypto views. The party that previously won elections by delaying taxes has now adopted a more moderate stance on the approval of Spot Bitcoin ETFs and has emerged victorious in the elections. With a narrow margin of 1.2% in the national elections, the significance of cryptocurrency investors is gaining recognition.
South Korea and Crypto
The Democratic Party of Korea plans to urge the Financial Services Commission (FSC) to reevaluate the status of spot Bitcoin ETFs. This confirms previous rumors, as stated in The Korea Economic Daily. The party is specifically aiming to win the support of crypto investors by taking steps related to ETFs.
In election campaigns, politicians employ various tactics such as addressing issues like street animals, individual armament, and tax cuts to secure votes. They now also seek to attract crypto investors by implementing more moderate regulations. This strategy is not unfounded, considering the large number of cryptocurrency investors worldwide. In fact, the daily trading volume of local cryptocurrency exchanges in Turkey has become competitive with the traditional stock market.
Politicians are well aware of this situation and understand that decisions concerning cryptocurrencies can have both positive and negative impacts on the outcome of an election. A single political decision can lead to significant gains or losses in the value of cryptocurrencies. If crypto investors in a developing country suffer substantial financial losses due to political pressure, it is likely to influence their voting preferences.
The opposition party in South Korea gained power in the April elections and currently holds 175 out of the 300 seats in the legislative body. By aligning themselves with crypto investors, they have a higher chance of winning elections.
South Korea ETF
An unnamed official from the Democratic Party’s policy committee revealed to The Korea Economic Daily that an official request will be made in June. This request aims to prompt the South Korean SEC (FSC) to reconsider its decision from January 18th. At that time, the decision stated that domestic securities firms might violate the Capital Market Law by listing foreign spot BTC ETFs.
The official stated:
“If the regulatory body remains unyielding, a complete overhaul of the rules may be necessary, which could take several months at best. However, if the FSC does not resist, South Korean investors may soon have the opportunity to invest in spot Bitcoin ETFs. This will undoubtedly accelerate the inflow of capital.”
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry substantial risk, and should conduct their own research.
