South Korea’s cryptocurrency industry may be headed for a Trump-inspired shakeup.
The candidate for the presidency of the Republic of Korea, Hong Joonpyo, said Tuesday that he would eliminate regulation as much as Trump’s administration did in the United States.
Hong has promised to make blockchain technology and virtual assets a recognized industry, and to introduce it into the public sector. Yonhap News report.
It comes only days after Donald Trump, the former U.S. Presidency signed a historic resolution to repeal a controversial IRS Rule that imposed reporting requirements similar to those of traditional brokers on developers and platforms for decentralized finance.
The first crypto-related law signed by a U.S. president was widely hailed and regarded as an important moment in the deregulation of this industry.
Hong’s move to embrace crypto comes at a time when South Korean legislators and experts are increasingly pressing Hong to adopt Washington’s digital assets strategy.
This has been affected by Trump’s executive order to create a Strategic Bitcoin Reserve. The U.S. is now the first nation to officially begin stockpiling cryptocurrency as a form of national wealth.
Last month in Seoul, leaders of the financial industry called for Bitcoin to be integrated into national reserves as well as for the launch of a stablecoin backed by wons. The move was made with preserving “monetary sovereignty” since USD-pegged stabilitycoins have dominated global markets.
But resistance persists. On March 16, the Bank of Korea publicly rejected holding Bitcoin as reserve assets, citing “price instability” and its failure to meet IMF Standards.
South Korea’s politicians are not going to let up now that the U.S. has been actively stockpiling Bitcoins.
Whether Joon-pyo’s promises translate into policy will depend on the outcome of an upcoming presidential election, expected as early as May, if current President Yoon Suk Yeol’s impeachment is upheld.
Stacy Elliott edited this article.
