Yoon Suk-yeol, the upcoming president of South Korea, has promised to relax crypto laws. The country’s banks are concerned about large crypto exchanges gaining monopoly power and are seeking regulatory approval to deal with cryptocurrency.
South Korea has Asia’s fourth-largest economy, and its population has enthusiastically welcomed the emerging private digital assets industry. According to the Korea Herald, Koreans have invested 52.8 trillion won, almost $43.6 billion.
The entire value of all accounts at the five largest South Korean exchanges, Upbit, Bithumb, Coineone, Korbit, and Gopax, is used to calculate the amount invested.
The Korea Federation of Banks (KFB) has submitted a draft of demands to the transition committee to be permitted to deal with cryptocurrencies, indicating that the South Korean banks are dissatisfied with the top five exchanges’ crypto monopolies.
The banks’ fear is expressed in the document, which states that crypto exchanges control 90% of the cryptocurrency market, prompting them to request a license to enter the market. The top 5 most notable banks in the KFB are KB Kookmin, Shinhan, Hana, Woori, and NongHyup, as well as the online-only Kakao Bank and Kbank correspond to the top 5 exchanges.
President-elect in the making Yoon Suk-Yeol promises to enact pro-crypto legislation, which will only contribute to his country’s crypto growth. Among these measures, he has promised to lower taxes on cryptocurrency earnings. The incumbent president Moon Jae-in attempted to implement the polar opposite of higher taxes on investors with gains above 2.5 million won.