On December 15, 2024, in an interview with local media, Jeong Eun-bo, chairman of the South Korean Stock Exchange, urgently called for the institutionalization of the cryptocurrency market.
“We must quickly institutionalize the virtual currency market and work to create new added value,” the President said.
His remarks come amid concerns that the nation may fall behind other countries that have already embraced and regulated digital assets.
Related: Cryptocurrency Trading in South Korea Surpasses Stock Market with $18 Billion in 24 Hours
Emphasis on the regulatory framework for the cryptocurrency market
According to a report by 10x Research, cryptocurrency retail trading volumes in South Korea rose to $18 billion in 24 hours on December 2, 2024, outpacing the country’s stock market by 22%.
“The virtual currency market has now grown in size and influence to the point that it cannot be ignored by traditional markets. Our country should also quickly make efforts to include virtual currency in institutional finance,” he said Eun-bo.
BREAKING: Retail Cryptocurrency Trading in South Korea Hits $18 Billion, Beating Local Stock Market
South Korean retail traders were frenzied over “high momentum” tokens, including $XRP, $DOGE, $ENSAND $HBAR Negotiation on December 2nd. pic.twitter.com/8EtsY01DPD
—Cointelegraph (@Cointelegraph) December 3, 2024
Given the popularity of cryptocurrencies in the country, Eun-bo stressed that the cryptocurrency market should be treated with the same regulatory framework as traditional financial markets to effectively address existing regulatory challenges.
Furthermore, he pointed out that since the election of Donald Trump as president of the United States, the average daily trading volume of virtual currencies has exceeded 20 trillion won ($13.9 billion), which is more than the national stock market.
He warned that otherwise South Korea could lose its competitive advantage internationally. “If we are vague in our treatment of virtual currency and treat it as a speculative asset, we will fall behind in terms of international competitiveness,” he said.
South Korea has not yet formally listed any cryptocurrency companies on its exchange
Additionally, local companies are currently unable to include cryptocurrency investments in their balance sheets.
Additionally, the government has not approved Bitcoin (BTC) spot exchange traded funds (ETFs).
The institutionalization of cryptocurrency in South Korea is further delayed due to recent political developments. The South Korean National Assembly has decided to postpone all cryptocurrency-related regulations until mid-2025.
South Korea Postpones 20% Tax on Cryptocurrency Earnings
South Korea has once again postponed the implementation of its 20% tax on cryptocurrency earnings, marking the third delay since the tax was first proposed in 2021.
The latest decision, announced on December 1, 2024, will push the fiscal implementation until 2025, following an agreement between the Democratic Party of Korea (DPK) and the ruling People Power Party (PPP) during budget negotiations .
Initially scheduled for January 1, 2022, the tax has faced repeated postponements due to regulatory concerns and political debates.
Related: South Korea Delays 20% Cryptocurrency Tax for Third Time Due to Regulatory Improvements
The post South Korea No Longer Wants to Be Vague About Cryptocurrencies! Stock Exchange Chief Calls for Institutionalization appeared first on 99Bitcoins.