President Yun Suk-declaration on cryptocurrency policy is expected to lead to a substantial increase in market capitalization for cryptocurrencies. Former prosecutors have promised not to tax earnings from bitcoin taxation up to $ 40,000. Crypto trading earnings, according to Yoon Sinbuchi, are believed to be the same as stock winnings.
Cryptocurrency adoption to increase in South Korea as the president-elect imposes no tax on gains
Yoon Suk-yeol, the President of South Korea, is a crypto enthusiast. President-elect Moon Jae-in promised to make a significant push for cryptocurrency in South Korea, with 0% taxes on gains up to $40,000.
President-elect Yoon Suk-yeol will take office in May 2022, and he plans to promote blockchain technology. As part of a broader crypto acceptance plan in South Korea, Yoon has promised to allow ICOs.
”We definitely welcome his stance as he is confident about boosting the industry. As ICOs are banned now, we have no choice but to issue coins in Singapore and other countries. Startups and ventures will be able to raise money more easily from investors if the ban is lifted”, Yoon Seong-han, secretary-general of Korea Blockchain Association, said.
The President-elect intends to exempt cryptocurrency trading gains of up to 50 million won from taxation. The Korea Blockchain Association has no ties to the incoming President. South Korea’s attitude toward cryptocurrencies is positive, despite concerns in the United Kingdom about terrorist financing and money laundering.
With gains of $72.8 billion in the last day, the entire crypto market capitalization is on the rise. South Korea’s crypto push could lead to a rise in the market value of digital assets.
The cryptocurrency market in South Korea reached 55.2 trillion won in December, according to the country’s financial regulator, with an average daily trading volume of 11.3 trillion won. In the country, more than 15.2 million people have accounts with 24 cryptocurrency brokers. Only 5.6 million of those who have registered actually trade.
As part of larger cryptocurrency ambitions, Yoon, a former top prosecutor who won the country’s closest presidential election in history last week, has promised to allow initial coin offerings or ICOs.
Crypto enthusiasts applauded Yoon’s suggestions, which they believe will remove roadblocks and open the door to further opportunities in blockchain-based assets.
With a margin of less than a percentage point, Yoon’s electoral victory was largely driven by the dissatisfaction of young males in social and economic terms. High inflation, limited growth, and, more lately, surging property prices have all contributed to this growing discontent.
The victor’s acceptance of cryptocurrencies coincides with the signing of an executive order by US President Joe Biden last week ensuring responsible development of cryptocurrencies and other digital assets.