Korean Crypto Investors Hope for Tax Delay Under New Administration: Survey

A recent survey provides valuable insight into the sentiment and policy priorities of Korean crypto investors under the nation’s new administration. Conducted by Coin Pulse and Cratos from June 4 to 6, the survey tracked weekly trends among South Korean cryptocurrency holders, revealing shifts in market outlook and strong preferences for future regulatory approaches. Understanding these perspectives is crucial as South Korea navigates the path for digital assets.

What are Korean Crypto Investors Thinking About Bitcoin?

The survey first looked at market expectations, specifically concerning Bitcoin (BTC). The findings show a slight cooling in bullish sentiment compared to the previous week:

  • 41.7% expect Bitcoin’s value to increase or significantly jump this week (down from 51.9%).
  • 25.3% predict a stable market (down from 33.9%).
  • 33.0% anticipate a decline or sharp drop (up from 14.2%).

This data offers a snapshot of the current Bitcoin price prediction Korea investors hold, indicating a more cautious short-term outlook compared to early June.

Beyond Price: How Do Korean Investors Feel Overall?

The survey also gauged the broader market sentiment among respondents:

  • 37% felt neutral about the overall market.
  • 30.6% indicated optimism or extreme optimism.
  • 32.4% expressed feelings of fear or extreme fear.

This split sentiment highlights the mixed feelings prevalent in the market, with a near-even distribution between positive, negative, and neutral outlooks.

Korean Crypto Investors Speak Out: What Policies Do They Want?

With South Korea’s 21st president now in office, the survey directly asked respondents about the crypto-related policies they hope to see from the new administration crypto policies. The responses reveal clear priorities for the investor base.

The Big Ask: Delaying South Korea Crypto Tax

The most significant finding relates to taxation. Nearly half of the respondents expressed a desire for relief from upcoming crypto taxes. Specifically:

48.8% supported delaying or exempting cryptocurrency taxes.

This strong preference underscores the concern among investors regarding the planned 20% tax on crypto gains exceeding 2.5 million won per year, which was originally set to take effect in 2022 but was postponed to 2023, and potentially facing further delays or adjustments under the new government.

Other Priorities for Crypto Regulation Korea

While tax relief was the top priority, other regulatory aspects also featured prominently in the survey responses. Investors have diverse hopes for the future of crypto regulation Korea.

Here is a breakdown of other policy preferences:

Policy Priority Percentage of Respondents
Stronger investor protection 25.9%
Relaxed regulations (permit ICOs, crypto ETFs) 13.0%
Promoting security token offerings (STOs) 6.5%
Introducing Korean won-pegged stablecoins 5.8%

These results show that beyond taxation, investors are also keen on feeling secure in their investments and seeing the market evolve with new products like ETFs and stablecoins, as well as new fundraising methods like ICOs and STOs.

What Does This Mean for the New Administration Crypto Approach?

The survey results send a clear message to the new administration crypto policy makers. Investor sentiment is significantly influenced by regulatory clarity and fairness, particularly concerning taxation. The strong call for tax delay or exemption suggests that the current tax plan is a major point of concern for a large segment of the crypto-holding population in South Korea. Addressing these concerns, alongside strengthening investor protection and potentially fostering innovation through relaxed rules for certain products, could be key areas for the government to consider as it shapes the future of digital asset regulation in the country.

Summary

A recent survey highlights the key concerns and hopes of Korean crypto investors. While short-term market predictions show mixed sentiment, the overwhelming priority for nearly half of respondents is the delay or exemption of the upcoming South Korea crypto tax. Other significant preferences include stronger investor protection and a desire for more relaxed crypto regulation Korea to allow products like ETFs and ICOs. These findings provide valuable feedback for the new administration crypto policy development, indicating that regulatory decisions, especially regarding taxation, will have a substantial impact on the sentiment and confidence of the nation’s digital asset holders. Understanding the views of investors, including their outlook on assets like Bitcoin price prediction Korea, is vital for creating effective and well-received policies.

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