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South Korea’s Deputy Prime Minister has asserted that the government holds a neutral stance regarding cryptocurrency issues.
Choi Sang-mok, the Deputy Prime Minister and Minister of Strategy and Finance, acknowledged that “domestic and international uncertainties” persist following a successful impeachment vote against President Yoon Suk-yeol earlier this month.
Neutral Stance on Crypto: Finance Chief
According to Newsis, Choi informed reporters that the government would “remain vigilant” despite the ongoing 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 stated that Seoul would “manage the economy as stably as possible” by “leveraging all the resources of both public and private sectors.”
Recently, South Korean lawmakers have indicated that they have implemented an “all-stop” or pause on all crypto-related legislation in light of the political upheaval in early December.
Yoon declared martial law on December 3, only for lawmakers to intervene and reverse his decision.
Impeachment Decision
Lawmakers have since voted to impeach the President, although the ruling is still pending ratification by the constitutional court.
Yoon has been suspended while awaiting a verdict, with the People’s Power Party faction effectively governing the nation in his absence.
Trading volumes on the South Korean crypto exchange platform Bithumb over the past 12 months. (Source: CoinGecko)
Choi addressed media inquiries on December 18, with one reporter questioning him about US President-elect Donald Trump’s “stance on strategic crypto reserves.”
“Since the specific details of the strategic cryptoasset proposal from President-elect Trump have not been disclosed yet, this is not the appropriate time for evaluation. We plan to formulate a response and other measures once the new US administration is in place. We will proceed after these and other new proposals related to cryptoassets are clarified.”
Choi Sang-mok, South Korea’s Deputy Prime Minister and Minister of Strategy and Finance
Crypto Tax Postponement
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The Deputy Prime Minister also commented on the National Assembly’s recent decision to postpone the implementation of crypto tax until 2027. He elaborated:
“The government is not negative on cryptoassets. As regulations and related frameworks are still developing, we opted to delay [the crypto tax launch]. We determined that it would be prudent to observe the progress [of regulations] before introducing taxation.”
Trading volumes on the South Korean crypto exchange platform Upbit over the past 12 months. (Source: CoinGecko)
Choi further stated that the Bank of Korea, financial regulators, and “other relevant authorities” are currently “developing new regulatory policies” for the crypto industry.
He mentioned that these policies focus “not only on consumer protection,” but also on “the legal nature” of cryptocurrencies.
Additionally, Choi indicated that these entities are examining broader “general” issues regarding “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 Concerns?
The Deputy Prime Minister indicated that the government is concentrating on executing the 2025 budget.
The People’s Power Party has encountered significant opposition from the Democratic Party, which holds a substantial 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 rejected the budget, leading to a prolonged standoff in the National Assembly.
However, following the impeachment vote, the government is optimistic about finally achieving progress in implementing the budget.
Crypto trading volumes remain elevated on South Korean crypto exchanges following the events of December 3, while the fiat won continues to depreciate against currencies like the USD.
Lawmakers, anticipating a possible election in the event of Yoon’s impeachment, had previously stated they would refrain from discussing crypto-related bills until the political turmoil subsided.
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