In a year filled with major elections around the world, many candidates have approached their 2024 election campaigns with bitcoin and cryptocurrency investors in mind. A local report suggests that South Korea's ruling party is looking to win the support of crypto voters with new considerations presented during a meeting at the National Assembly this Monday.
South Korea Reviews Cryptocurrency Investments, bitcoin ETFs
According to a report According to News1, a local media outlet, South Korea's ruling party is considering a cryptocurrency-related general election pledge to attract support from crypto investors for the country's upcoming April elections.
Yoon Jae-ok, parliamentary leader of the People Power Party, spoke during the General Assembly of Legislators held Monday afternoon at the National Assembly in Yeouido, Seoul.
The commitment includes several promotional measures for the crypto industry, such as allowing virtual asset exchange offerings (IEOs), corporate investments in virtual assets, and spot bitcoin exchange-traded funds (ETFs).
During the meeting, the People's Power Party announced that it is considering a plan to allow investment products approved by foreign countries such as the United States to enter the country. Trading of such products, such as spot bitcoin ETFs, through local security firms is currently blocked due to the “ban” imposed by national financial authorities.
Likewise, financial companies and corporations are currently unable to invest in virtual assets, a measure that the Korean ruling party is actively reviewing, according to the local media outlet.
The report also specifies that financial companies must ensure investor protection by preparing appropriate measures when handling cryptocurrency-based investment products.
During the meeting, the ruling party discussed the best plan of action to allow corporate investment in cryptocurrencies in South Korea. At first, they plan to allow “investment in virtual assets to companies for asset management purposes” before gradually allowing it to “corporations where the security of customer funds is important,” such as banks and insurance companies.
Accordingly, the People's Power Party has also planned to introduce the IEO, which is one of President Yoon Seok-yeol's national tasks, as the report explains.
IEO is a new virtual asset sold through an exchange, with the intention that a minimum “safety feature” can be provided through a virtual asset exchange that has been reported to financial authorities.
Election Campaigns Target crypto Voters
According to the report, the People Power Party is studying promoting “the entire virtual asset industry” in hopes of capturing the votes of South Korean crypto investors for the upcoming general election.
Some electoral campaigns, such as that of former US Republican candidate Vivek Ramaswamy, aim for better regulations in the sector; others, like Bukele's campaign for his second term in El Salvador, doubled down on his commitment to the adoption of bitcoin and cryptocurrencies.
In the case of the South Korean elections, the ruling party has promised to create a 'Digital Assets Committee' that would have enough authority to propose laws and impose sanctions. This decision comes after the stipulated establishment of a dedicated organization under the Financial Services Commission.
The current 'Virtual Asset Protection Law', which is scheduled to be implemented in July this year, specifies the creation of a virtual asset organization in the country. However, the authority of this organization would be limited to an “advisory” level.
Because of this, the People Power Party is seeking to elevate the virtual assets organization to “a role similar to the 'Securities and Futures Committee' established within the Financial Services Commission.”
Additionally, the ruling party plans to resolve discrepancies in existing policies related to cryptocurrencies and digital assets in general. The introduction of a virtual asset blind trust is also being considered, “managing it carefully at the same level as the actions of members of the National Assembly and high-ranking public officials.”
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