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Crypto adoption to skyrocket in South Korea as President-elect imposes zero taxes on gains

  • Crypto market capitalization prepares for massive boost as South Korean President-elect Yoon Suk-yeol announces pro-crypto policies. 
  • The former prosecutor has vowed not to impose taxes on gains from cryptocurrency taxation, up to $40,000. 
  • Yoon Suk-yeol has announced that crypto trading gains would be considered the same as stock winnings. 

Global crypto market capitalization has increased by $72.8 billion over the past 24 hours. Proponents believe that the market cap could appreciate even further once South Korea adopts a pro-crypto stance in taxation. 

South Korea to impose zero taxes on crypto capital gains

South Korea's incoming President Yoon Suk-yeol is pro-crypto. The President-elect vowed to make a big cryptocurrency push in South Korea, imposing zero taxes on cryptocurrency gains up to $40,000. 

Yoon Suk-yeol takes office in May 2022; the President-elect is keen on driving the adoption of blockchain technology. Yoon has vowed to allow the introduction of initial coin offerings as part of the broader plan for crypto adoption in South Korea. 

The President-elect plans to impose no taxes on cryptocurrency trading gains up to 50 million won. Yoon Seong-han, secretary-general at Korea Blockchain Association, was quoted as saying:

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 incoming President is not related to the Korea Blockchain Association. While cryptocurrencies have prompted concerns of financing terrorist activities and money laundering in the UK, South Korea's stance on crypto is welcoming. 

As of December 2021, South Korea's cryptocurrency market has hit 55.2 trillion won, and the country houses over 15.2 million traders. 

The overall crypto market capitalization is in an uptrend, posting $72.8 billion in gains over the past day. The crypto push from South Korea could contribute to a spike in digital asset market capitalization. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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