Michaela Alvez
The South Korean National Assembly has reportedly paused all crypto-related regulatory work amid the ongoing fallout from martial law and impeachment plans against the current president.
The crypto sector remains in turmoil following the brief period of martial law declared by President Yoon Suk Yeol.
According to Chosun Ilbo, before the suspension of crypto-related regulations, the National Assembly approved a legal amendment that will postpone the implementation of the crypto tax until January 2027.
If the National Assembly had not voted on December 10, the crypto tax would have been implemented as planned on January 1, 2025.
The report stated that a National Assembly official recently commented on the status of the country’s pending crypto regulations, noting that all related policies have been sidelined due to the ongoing impeachment issue. This makes it unlikely that any votes on the matter will take place in the near future.
The report suggested that discussions on crypto-related regulations may not resume until the first half of 2025. The unnamed official indicated that bills concerning virtual assets would face an indefinite delay, with any progress likely postponed until the “impeachment situation is over.”
The “all-stop” on crypto-related matters has left several key issues in limbo, including:
- South Korea’s long-standing ban on initial coin offerings (ICOs), which President Yoon had pledged to “review” before taking office
- A pending decision on whether domestic companies will be allowed to use their balance sheets to purchase cryptocurrency
- A decision on the legalization of securities token offering (STO)
- A ruling on the legality of Bitcoin spot ETFs
Hope for South Korea Crypto Investors
Despite the pause on crypto-related regulations, there is still some optimism among those in the industry.
The Financial Services Commission (FSC) has finalized comprehensive guidelines for corporate cryptocurrency accounts, developed with input from the Virtual Asset Committee, and is set to implement them later this month.
However, the newspaper noted growing concerns that domestic blockchain and virtual asset companies, along with investors, may consider relocating abroad due to the ongoing “martial law situation.”
Read More
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- Can’t Pay Taxes? South Korea City Will Sell Your Crypto to Settle Debts
- South Korea Tightens Grip on Crypto: Exchanges Gain Freeze Power, City Seizes Assets for Taxes
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
