With spot Bitcoin ETFs being all the rage, South Korea’s opposing party has a new trick in hand to garner support from the masses ahead of the general election on April 10.
According to reports from local news media on Tuesday, the Democratic Party of South Korea is advocating for allowing local citizens to invest in spot Bitcoin ETFs and for financial institutions to launch such investment vehicles.
The party aims to legalize investors to purchase spot Bitcoin ETFs using their individual savings accounts (ISAs), which are comprehensive accounts for various investments in funds or equity-linked securities, offering tax exemptions for financial profits of up to two million Korean won (worth nearly $1,497).
The latest development comes just a day after the People Power Party, which currently holds power in South Korea, was reported to be exploring options to allow spot Bitcoin ETFs as part of its campaign pledges for the upcoming general election in April, deviating from its previously hostile stance.
As per a report from local media earlier this week, the right-wing part is also planning to examine legislative actions to authorize other digital asset investment products that have received approval in the United States.
In addition to a number of changes, such as lifting bans on IEOs, the ruling party is also looking to roll out a “Digital Asset Promotion Committee,” with the necessary authority to propose laws and enforce sanctions related to the industry.
The People Power Party is also pushing for an additional two-year delay in taxing gains from crypto investments.
Originally slated for 2023 and later postponed to January 2025, the current request from the People Power Party aims to extend the postponement to 2027.
South Korea has witnessed increased crypto trading activity, which, in turn, has triggered the growth of suspicious transactions. The authorities witnessed nearly 49% more alerts of potentially potentially fraudulent transactions from crypto service providers in 2023 compared to the previous year.
Financial Intelligence Unit’s (FIU) paper disclosed that the country clocked over 16,000 instances of reported crypto transactions suspected of links to activities like money laundering, market manipulation, or illicit drug trading in 2023.