Jeong Eun-bo, chairman of the South Korea Exchange, has emphasized the growing importance of the virtual currency market, which he believes has become too significant for traditional markets to ignore.
In an interview with South Korea’s Maeil Kyungjae, Eun-bo emphasized the need to institutionalize the cryptocurrency market, much like traditional finance, to navigate the existing regulatory hurdles.
Eun-bo warned that without institutionalizing the crypto market, South Korea risks falling behind countries that have already embraced cryptocurrency and established regulations that treat virtual assets on par with traditional ones.
“If we are vague with our treatment of virtual currency and treat it as a speculative asset, we will fall behind in terms of international competitiveness,”
he said.
He highlighted the rapid global adoption of crypto, noting that its trading volume has already surpassed that of the domestic stock market. Eun-bo stated,
“The average daily trading volume of the domestic stock market is around 20 trillion won ($13.9 billion), yet the virtual currency market has exceeded this since Donald Trump was elected U.S. President.”
Eun-bo’s comments follow the comments from a South Korean National Assembly official revealing that crypto-related policies are currently stalled due to the impeachment issue. The official reportedly warned that bills concerning virtual assets would face “indefinite postponement” until the impeachment situation is resolved. Discussions on crypto regulations are expected to resume in the first half of 2025. The official noted that with the National Assembly focused on impeachment, virtual asset bills are not a priority at this time.
Notably, South Korea has delayed its 20% cryptocurrency tax for the third time, now set to take effect in 2027. Democratic Party floor leader Park Chan-dae emphasized the need for more institutional preparation and a comprehensive overhaul of frameworks. The delay comes amid disagreements between the ruling and opposition parties. The revised plan allows taxpayers to estimate the original purchase price based on the sale price and raises the tax exemption threshold to 50 million, reducing the tax burden for most investors.
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