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As the upcoming elections approach, pro-crypto rhetoric is starting to find a receptive audience in South Korea. The party that had previously won elections by postponing taxes now remains moderate on the approval of Spot Bitcoin ETFs and has won the elections. With a marginal victory of 1.2% in national elections, the importance of cryptocurrency investors is increasingly recognized.
South Korea and Crypto
The Democratic Party of Korea will ask the Financial Services Commission (FSC) to reassess the status of spot Bitcoin ETFs. Statements made to The Korea Economic Daily confirm previous rumors. The party specifically wants to take steps that will win the sympathy of crypto investors regarding ETFs.
Street animals, individual armament, tax cuts, and many other issues are tools used to gather votes in elections. Politicians also want to attract crypto investors to their side with more moderate regulations. They are not wrong in this regard because there are many cryptocurrency investors worldwide. In Turkey alone, the daily volume of local cryptocurrency exchanges has become competitive with the traditional stock market.
Politicians are aware of this situation and realize that decisions regarding cryptocurrencies could have positive or negative repercussions in the nearest election. A single political decision can lead to thousands of dollars lost or gained. If you are in a developing country and the political pressure on crypto causes you to lose thousands of dollars, this will affect your voting preference.
The opposition party in South Korea came to power in the April elections and now holds 175 of the 300 seats in the legislative body. Thus, siding with crypto investors can win elections.
South Korea ETF
An unnamed official from the Democratic Party’s policy committee told The Korea Economic Daily that an official request will be made in June. Accordingly, the South Korean SEC (FSC) might reconsider its decision from January 18th. At that time, the decision stated that domestic securities firms could violate the Capital Market Law by listing foreign spot BTC ETFs.
The official said;
“If the response from the competent authority to the competent interpretation is insufficient, we consider revising the Capital Market Law.”
If the regulatory body remains stubborn, a complete change of rules might be necessary, which could take months at best. However, if the FSC does not resist, South Korean investors might soon be able to invest in spot Bitcoin ETFs. This will undoubtedly accelerate capital inflows.
