South Korea’s Deputy PM: ‘Government Not Negative on Crypto’
South Korea’s Deputy Prime Minister has claimed that the government is not negative on crypto-related matters.
Choi Sang-mok, the nation’s Deputy Prime Minister and Minister of Strategy and Finance, admitted that “domestic and international uncertainties” remain in the wake of a successful vote to impeach President Yoon Suk-yeol earlier this month.
Not Negative on Crypto: Finance Chief
Per Newsis, Choi told reporters that the government would “not let its guard down” in spite of the turmoil.
Choi Sang-mok, South Korea’s Deputy Prime Minister and Minister of Strategy and Finance, speaking on December 17, 2024. (Source: JTBC News/YouTube/Screenshot)
He claimed Seoul would “manage the economy as stably as possible” by “gathering all the capabilities of the public and private sectors.”
South Korean lawmakers have recently claimed to have issued an “all-stop” or pause on all crypto-related legislation following the political chaos of early December.
Yoon declared martial law on December 3, only for lawmakers to force their way into parliament and overturn his decision.
Impeachment Ruling
Lawmakers have since voted to impeach the President. But the ruling is yet to be ratified by the constitutional court.
Yoon has been suspended pending a verdict, with the People’s Power Party faction de facto ruling the nation in his stead.
Trading volumes on the South Korean crypto exchange platform Bithumb over the past 12 months. (Source: CoinGecko)
Choi responded to questions from the media on December 18, with one journalist asking him about US President-elect Donald Trump’s “position on strategic crypto reserves.”
“Since the specific details of the strategic cryptoasset proposal from President-elect Trump have not been revealed yet, this is not the time to evaluate it. We plan to prepare a response and other measures when the new US administration takes office. We will act after these and other and new proposals related to cryptoassets become concrete.”
Choi Sang-mok, South Korea’s Deputy Prime Minister and Minister of Strategy and Finance
Crypto Tax Delay
The Deputy Prime Minister also spoke about the National Assembly’s recent vote to delay the launch of crypto tax to 2027. He explained:
“The government is not negative on cryptoassets. As regulations and related systems are still in their infancy, we decided to defer [the crypto tax launch]. Because we judged that it would be appropriate to monitor the progress [of regulations] before we introduce taxation.”
Trading volumes on the South Korean crypto exchange platform Upbit over the past 12 months. (Source: CoinGecko)
Choi further claimed that the central Bank of Korea, financial regulators, and “other related authorities” are currently “preparing new regulatory policies” for the crypto sector.
He said these focus “not only on customer protection,” but also on “the legal nature” of crypto.
And Choi said these parties were also looking at more “general” issues on “how to regulate this sector domestically.”
“Everything has happened at lightning speed from beginning to end."
The swift fall of South Korea's president gestures at the nation's "palipali" culture. Koreans aren't afraid of bold pivots and voicing their displeasure to make a change https://t.co/azgptYlxWr
— Bloomberg (@business) December 18, 2024
Budget Burden?
The Deputy Prime Minister indicated that the government was focusing its attention on implementing the 2025 budget.
The People’s Power Party has faced stiff opposition from the Democratic Party, which has a large majority in the National Assembly.
The results of a public opinion poll show that the gap in support between the Democratic Party of Korea and the People Power Party has reached its highest level since the inauguration of the Yoon Suk Yeol administration in May 2022.#YoonSukYeol https://t.co/YDPCnlQhwj
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) December 18, 2024
The Democratic Party has previously refused to accept the budget, causing a long stand-off in the National Assembly.
However, following the impeachment vote, the government is hopeful it will finally make a breakthrough in implementing the budget.
Crypto trading volumes remain high on South Korean crypto exchanges following the events of December 3, while the fiat won continues to slide against currencies like the USD.
Lawmakers, anticipating a potential election in the event of Yoon’s impeachment, previously said they would not discuss crypto-related bills until the political chaos had abated.
Source: cryptonews.com
