In South Korea's presidential election in March 2022, former prosecutor Yoon Seok-yeol won with a margin of less than 1% (247,077 votes). It was the closest presidential election in the country's history.
Just about two months later, The collapse of the Terra stablecoin Wiped out about $60 billion worldwide, including about 280,000 Koreans. report That I was a victim.
There are more than 280,000 cryptocurrency investors in the country – South Korean prosecutors say 6.27 million cryptocurrency users In September 2023.
The numbers suggest that if even 247,078 of these voters had voted based solely on the candidates' crypto policies, the election outcome could have been different. South Korea is just one day away from an important election in which cryptocurrencies are certainly an issue. The role of cryptocurrencies may have become even more important in this election than in the previous one.
Analysts say young people could play a decisive role in this country of about 52 million people.of the cryptocurrency ecosystem Young people make up the majorityafter a frenzy, shake off And what comes out of that Do Kwon and Terra's Shadowhowever, cryptocurrency-related political promises may have acted as a dopamine to energize voters in this area.
On April 10, 2024, the country is heading to parliamentary polls, where multiple political parties and coalition governments will compete for the 300 seats in parliament. It is expected to be split into two parties – President Yoon Seok-yeol's conservative People's Power Party (PPP) aims to win 114 seats, while the liberal Democratic Party of Korea (DPK) holds 156 seats. on the assembly you want to solidify.
South Korean parliamentary elections are held every four years. In 2020, the Liberal Party (DPK) won the election easily. Therefore, the impact of cryptocurrencies, which were not as prominent as they are today, is likely to have been minimal.
However, in this election, political analysts I said it would be difficult If one party wins a majority, any group of voters becomes important. “I would think so too,” said the Seoul-based legal director. hashed Jin Gan was asked if cryptocurrencies could be a deciding factor in the next election. “In the close 2022 presidential election, a key deciding factor was young people in their 20s and 30s. Both parties will be interested in capturing the votes of these young people. ” What is perhaps unclear is whether crypto-savvy voters will vote as a bloc.
“It's natural that the election will be close,” said Abel Seo, BitGo's Asia-Pacific director based in Seoul. “But it's hard to say whether cryptocurrencies will be the deciding factor. What I can say is that as time goes on and cycles go by, the market is getting bigger and bigger. Not just for investors. Traditional companies will also participate. So if at some stage these traditional companies come in and enter the cryptocurrency space, the elections could be influenced by this space.”
During the 2022 presidential election, President Yoon Seok-yeol pledged to limit taxes on cryptocurrency profits and allow initial coin offerings (ICOs).
It is unclear whether his crypto pledges played a decisive role in his victory in the historically close election. In the end, he was unable to fulfill his promise to allow ICOs, and with bipartisan support in Congress, taxes were deferred, if not restricted.
The opposition Democratic Party (DPK) promised to allow investors to buy Spot Bitcoin (BTC) exchange traded funds (ETFs), but said the PPP is also exploring ways to allow ETFs.
The slight difference in the promises stems from their political views on pending crypto taxation policies.
Taxation on income from virtual assets and income from “transfers or loans of virtual assets” was initially postponed from 2023 to 2025. The DPK is also expected to propose a comprehensive framework and hopes to preserve the start-up of cryptocurrencies. However, the government wants to impose a 22% tax on crypto gains exceeding 50 million Korean won ($37,316), rather than the currently proposed 2.5 million Korean won ($1,865). There is.
The PPP also pledged to establish a Digital Asset Promotion Committee to propose legislation and impose sanctions.
“When it comes to taxes, both parties give crypto-savvy people a reason to vote, and the same goes for ETFs,” Seo said. “The fact that whether to proceed with the introduction of digital assets and spot Bitcoin ETFs will be a hot topic during the election shows how the digital asset market has grown and the implications of the digital asset market for the Korean economy, including institutional investors. It reflects its importance.”
Cryptocurrency-friendly policies for Korean institutions may still be a long way off.upper election year” Lawmakers may want to ensure that their framework is not cast in stone in the face of global consensus.
“It is unlikely that market regulation will be introduced in this super election year,” Kang said. “South Korean authorities are wary of jurisdictional rulings in virtual currency regulation that could be inconsistent with the approaches of major countries such as the EU and the US.”
South Korea's election is “one of many elections to be held around the world in the future, and will inevitably influence the direction and pace of crypto policy, but the US election will be the big one for crypto policy. I think it’s a presidential election,” Angela Ang said. She is a senior policy advisor at blockchain intelligence company TRM Labs.
