South Korea elected a new president on Wednesday (9), according to the Associated Press. Yoon Seok-yeol of South Korea's Conservative Party won the election.
Yoon is a former prosecutor and a staunch cryptocurrency enthusiast – a topic that has dominated the presidential campaign. Among his campaign promises, Yoon has pledged to raise the threshold for the cryptocurrency capital gains tax exemption.
In addition, the presidential election has now promised to lift the cryptocurrency cargo industry. In this regard, Yoon said he would end the ban on initial token offerings (ICOs) that has been in place since 2017.
Election controversy to the end
During the campaign, Yoon confronted Liberal Party candidate Lee Jae-myung. The election was one of the closest elections in Korean history. Yoon won with 48.6 percent of the valid votes, while Lee received 47.8 percent of the votes.
This means that the difference between the two is only 0.8%, which is almost negligible. Since there is no runoff in Korea, the dragon automatically elects the winner.
However, Yoon received the most votes among voters between the ages of 20 and 30 (72.5%) and 30 and 40 (56.5 vs. 38.7%).
Among the main topics of the election, cryptocurrency was one of the most popular. In fact, both Yoon and Lee announced market-friendly positions in an attempt to win the support of young voters.
In this regard, they have both gone against the incumbent president of the Democratic Party, Moon Jae-in, who has been suppressing the cryptocurrency market. This has caused resentment among young citizens, who are turning to the stock market and investing in the country's cryptocurrencies.
With Moon's regulatory changes, nearly 70 Korean exchanges fail in 2021. The three major Korean exchanges have 5 million individual accounts, representing nearly 10 percent of the country's population.
From Startups to Cryptocurrency Taxes
在整个竞选过程中，尹批评了当前的加密货币法规，这些法规 "与现实相去甚远且不合理"。 他表示，如果当选，他将修改这些法规，目的是利用 "虚拟资产市场的无限潜力"。
According to the current president, South Korea needs to become an attractive environment for investors and companies. Yonn expressed his desire to attract and develop cryptocurrency "unicorns" – startups with a market cap of $1 billion or more.
Yoon's proposal also aims to benefit individual investors, especially in terms of taxation. The presidential electorate has promised to increase the capital raised by the proposed tax exemption for cryptocurrency sex profits.
Under newly adopted regulations that will take effect in 2023, a 20% tax must be imposed on cryptocurrency income. The exemption will apply to annual income of up to 2.5 million won ($2,024).
Yoon has pledged to extend this limit to 52.4 million won ($42,450).
The new president has also vowed to take tough measures in the fight against cryptocurrency crime. He intends to take legal action to confiscate the profits of cryptocurrencies obtained through illegal means. The money will not stay in the country, but will be returned to the victims of the scam.
There are currently at least 14 bills related to cryptocurrencies in the South Korean parliament. But none of them have been analyzed, which leaves a regulatory vacuum and leads to insecurity in the industry.
Many companies have avoided investing in South Korea due to a lack of regulation, a situation that could change with the arrival of a new president. Yoon will take office in May 2022, when Moon's term will end.