South Korea’s Deputy Prime Minister, Choi Sang-mok, has clarified his stance on cryptocurrency amid political unrest following President Yoon Suk-yeol’s impeachment. “The government is not negative on cryptoassets,” he said.
South Korea Eyes Crypto Stability Amid Political Upheaval
The Bank of Korea intervened as the won hit a 2008 low and stocks fell after Yoon’s impeachment. Meanwhile, President Han Duck-soo reassured Biden that South Korea’s foreign policies remain unchanged. This comes amid internal instability and external pressures, including potential shifts in U.S. trade policies under President-elect Donald Trump.
Choi emphasized that despite political disruptions, efforts to refine crypto-related regulations remain on track despite the “domestic and international uncertainties.” Yoon’s controversial martial law declaration led to his suspension, with the constitutional court currently reviewing the case, leaving the nation uncertain.
This political turmoil has delayed discussions on crypto-related legislation, although trading volumes on major South Korean exchanges remain strong, reflecting continued interest in the market. In light of this, Korea Exchange Chairman Jeong Eun-bo called for quick integration of cryptocurrency into the country’s framework. He stressed the need for regulatory action as the crypto market grows.
The Prime Minister also emphasized the importance of implementing the 2025 budget, as the ruling People’s Power Party faces opposition from the Democratic Party. While the impeachment has worsened the legislative deadlock, there is hope it will eventually lead to a renewed focus on economic reforms, including crypto regulations. Nevertheless, Choi reaffirmed the government’s commitment to economic stability, stating, “We will manage the economy as stably as possible by gathering all the capabilities of the public and private sectors.” He also highlighted that crypto regulation continues to be a priority.
Government Pushes Back Crypto Taxation to 2027
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The National Assembly recently announced a decision to postpone the introduction of crypto taxation until 2027. Explaining the move, Choi stated: “Since regulations and related systems are still in their early stages, we decided to delay the launch of the crypto tax. We believe it’s more appropriate to monitor how the regulations develop before implementing taxation.” This delay highlights the government’s cautious stance, giving them time to assess the rapidly evolving crypto landscape and ensure that taxation measures align with a more established regulatory framework.
Can South Korea Balance Crypto Innovation and Risk?
Choi discussed the ongoing efforts to create a strong regulatory framework, stating that the Bank of Korea, financial regulators, and other relevant authorities are actively working on new policies. These efforts focus on key issues such as customer protection, the legal status of crypto assets, and governance strategies for the domestic crypto sector. The country aims to balance innovation and risk, with platforms like Bithumb and Upbit reinforcing its position in the global crypto market.
Choi Holds Back on Trump’s Strategic Proposal
Addressing questions about the international impact of cryptocurrency policies, the PM specifically mentioned Trump’s suggestions for strategic crypto reserves. “Since the details of President-elect Trump’s strategic crypto-asset proposal haven’t been made public yet, it’s not the right time to evaluate it. We will take action once these and other proposals are more clearly defined,” the PM said. This cautious response highlights South Korea’s intention to align its policies with global trends while protecting its interests.
Conclusion:
Deputy PM Choi Sang-mok reassured the public that the government maintains a positive stance on crypto assets while emphasizing the need for a cautious approach, which is evident in the decision to delay crypto taxation until 2027. Although political challenges have slowed progress on crypto legislation, South Korea continues to balance innovation with risk, ensuring its role in the global crypto market remains strong. The government’s focus on economic stability and regulatory development will be key in shaping the sector’s future.
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Frequently Asked Questions (FAQs)
- What is South Korea’s stance on cryptocurrencies?
- South Korea is not negative on crypto assets, according to Deputy PM Choi Sang-mok.
- What is the status of cryptocurrency regulation in South Korea?
- Crypto regulation efforts are ongoing despite political disruptions.
- How has political unrest affected South Korea’s crypto market?
- Political unrest has delayed crypto legislation but trading volumes remain strong.
- What is the status of South Korea’s 2025 budget?
- The 2025 budget is vital for economic stability amid political challenges.
- Why has South Korea delayed crypto taxation until 2027?
- Crypto taxation is postponed to allow for better regulatory development.
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