On 15 December 2024, in an interview with local media, Jeong Eun-bo, the Chairman of South Korea Stock Exchange, urgently called for institutionalization of the crypto market.
“We need to quickly institutionalize the virtual currency market and work to create new added value,” the Chairman said.
His remarks come amid concerns that the nation might lag behind other countries that have already embraced and regulated digital assets.
Related: Crypto Trading In South Korea Surpasses Stock Market With $18 Billion In 24 Hour
Emphasis On Regulatory Framework For Crypto Market
Retail crypto trading volumes in South Korea soared to $18 billion within 24 hours on 2 December 2024, surpassing the country’s stock market by 22%, according to a report from 10x Research.
“The virtual currency market has now grown in size and influence to the point where it cannot be ignored by traditional markets. Our country should also quickly make efforts to include virtual currency in institutional finance,” said Eun-bo.
🇰🇷 LATEST: South Korea retail crypto trading hits $18B, beating local stock market
South Korean retail traders were frenzying over “high momentum” tokens including $XRP, $DOGE, $ENS, and $HBAR on Dec. 2 trading. pic.twitter.com/8EtsY01DPD
— Cointelegraph (@Cointelegraph) December 3, 2024
Given the popularity of crypto in the country, Eun-bo stressed that the crypto market should be treated with the same regulatory framework as traditional financial markets to navigate existing regulatory challenges effectively.
Furthermore, he pointed out that since Donald Trump’s election as US President, the average daily trading volume of virtual currencies has exceeded 20 trillion won ($13.9 billion), which is more than the domestic stock market.
He warned that failure to do so could result in South Korea losing its competitive edge internationally. “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 stated.
South Korea Yet To Formally List Any Crypto Firms On Stock Exchange
Additionally, local companies are currently unable to include crypto investments on their balance sheets.
The government has also not approved Bitcoin (BTC) spot exchange-traded funds (ETFs).
The institutionalization of cryptocurrency in South Korea faces further delays due to recent political developments. The South Korean National Assembly has decided to postpone all crypto-related regulations until mid-2025.
South Korea Postpones 20% Tax On Crypto Gains
South Korea has once again postponed the implementation of its 20% tax on cryptocurrency gains, marking the third delay since the tax was first proposed in 2021.
The latest decision, announced on 1 December 2024, will push the tax implementation to 2025, following an agreement between the Democratic Party of Korea (DPK) and the ruling People Power Party (PPP) during budget negotiations.
Initially planned for 1 January 2022, the tax has faced repeated postponements due to regulatory concerns and political debates.
Related: South Korea Delays 20% Crypto Tax For Third Time, Cites Regulatory Refinement
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