Upon taking office in May, South Korean President-elect Yoon Suk-yeol vowed to zero tax crypto trading gains not exceeding 50 million won, approximately $40,000 similar to stock gains, according to Nikkei.
Deemed a crypto enthusiast, the president-elect emerged victorious in the tightly contested election held last week, and part of his crypto pledges entailed giving initial coin offerings (ICOs) the green light.
Crypto taxation has been a burning issue in South Korea since its parliament tabled a bill in 2020 where cryptocurrency gains would be slapped with a 20% gain.
Furthermore, the crypto industry in the nation has been facing harsher and stricter administrative measures, given that nearly two-thirds of exchanges were forced to close shop with $2.6 billion in losses last year.
Therefore, the crypto-friendly initiatives promised by Yoon Suk-yeol are seen as a stepping stone towards more adoption on South Korean soil.
The secretary-general of the Korean Blockchain Association, Yoon Seong-han, welcomed the pledges and stated:
“We definitely welcome his stance as he is confident about boosting the industry. As ICOs are banned now, we have no choice but to issue coins in Singapore and other countries. Ventures and startups will be able to raise money easily from investors (if the ban is lifted).”
The president-elect’s initiatives will open doors to more crypto opportunities as he understands the future, and it is unstoppable, according to Anndy Lian, the chairman of the Netherlands-based BigONE exchange.
Crypto investments are popular in South Korea, given that at least 15.2 million people in the nation have accounts with 24 cryptocurrency brokers, according to the country’s financial regulator. For instance, one in four Korean college students has invested in cryptocurrency based on a study carried out by part-time job information provider Alba Heaven.