As Bitcoin’s price continues to showcase a rapid increase, potentially breaking through the 100 million won mark, the approval of Bitcoin spot Exchange-Traded Funds (ETFs) has been credited with playing a significant role in this surge by attracting large-scale capital inflows. In this climate, the political realm in South Korea is also engaging in intense debates over Bitcoin ETF-related promises, thereby significantly increasing the interest of financial investors.
The Democratic Party of Korea has announced its commitment to introduce Bitcoin spot ETFs within the country. This initiative is part of a broader plan to incorporate Bitcoin ETFs into Individual Savings Accounts (ISAs) to enhance tax benefits and expand wealth creation opportunities for citizens. The party’s floor leader voiced concerns that failing to approve Bitcoin spot ETFs in South Korea could lead to domestic capital flowing overseas and isolation in the market, demonstrating a strong will to relax regulations on virtual assets.
Conversely, the People Power Party, which was expected to propose similar pledges, has adopted a more cautious approach. They are considering a plan that involves deferring taxation on virtual asset transaction profits. Meanwhile, regardless of the upcoming general election, financial authorities have clearly stated that the domestic listing or brokerage trading of foreign Bitcoin spot ETFs is not permitted under the current Capital Markets Act. However, it is expected that public discussions on virtual asset ETFs will proceed after the election.
Korbit Research Center, a domestic virtual asset exchange, criticized the financial authorities’ refusal to ease regulations. The center pointed out that advanced countries do not view anti-money laundering and free capital markets as mutually exclusive, emphasizing the need for South Korea to also make efforts to enhance its global competitiveness. The pledges and debates within the political arena ahead of the general election are expected to significantly influence the future of the virtual asset market.
