Increasing Interest in Policies Supporting Cryptocurrencies

As the upcoming elections draw near, there is a growing acceptance for pro-crypto ideas in South Korea. The party that had previously won elections by delaying taxes is now taking a more moderate stance on the approval of Spot Bitcoin ETFs, and this strategy has helped them secure a victory in the elections with a narrow margin of 1.2%. This victory highlights the increasing recognition of the importance of cryptocurrency investors.
South Korea and Crypto
The Democratic Party of Korea plans to request the Financial Services Commission (FSC) to reevaluate the status of spot Bitcoin ETFs, as confirmed by statements made to The Korea Economic Daily. The party aims to win the support of crypto investors by taking steps that are favorable to ETFs.
In elections, politicians use various tools such as street animals, individual armament, and tax cuts to gather votes. Now, they are also looking to attract crypto investors by implementing more moderate regulations. This is a smart move considering the large number of cryptocurrency investors worldwide. For instance, in Turkey alone, the daily volume of local cryptocurrency exchanges has become comparable to that of the traditional stock market.
Politicians are aware of the impact that decisions on cryptocurrencies can have in an election. A single political decision can result in the gain or loss of thousands of dollars. If the pressure on crypto in a developing country causes investors to lose significant sums, it will certainly 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 boosted their chances 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 will urge the South Korean SEC (FSC) to reconsider its decision from January 18th, which stated that domestic securities firms may be in violation of the Capital Market Law if they list foreign spot BTC ETFs.
The official stated:
“If the regulatory body remains stubborn, a complete change of rules might be necessary, and this process could take several months at best. However, if the FSC cooperates, 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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Politicians understand the significance of their decisions regarding cryptocurrencies and how they can impact the outcome of an election. They also realize that the crypto market is highly volatile, and therefore, investing in cryptocurrencies carries risks. Investors should conduct their own research and be cautious when dealing with cryptocurrencies.