The National Election Commission confirmed in December that fundraising through NFTs does not violate the country ’ s Political Funds Act or the Public Official Election Act, thereby opening up a potentially piquant new use case for NFTs.
Reading: South Korea to have first presidential candidate to issue NFTs
Park Young-sun, who is in bang of digitalization policies at the DPK ’ randomness election campaign committee and a erstwhile minister of SMEs and start-ups, announced that she had successfully sold an NFT worth more than $ 3,000 AUD on January 1. The campaign is an feat to bolster Mr. Lee ’ s chances at the poll booths, as he tries to win over new voters by supporting the country ’ south solid crippled industry that advocates for the use of NFTs. In an consultation with a popular korean gaming Youtuber in December, Mr.
The presidential candidate of the rule democratic Party of Korea will become the universe ’ mho foremost politician to issue NFTs for political fund-raise.
NFTs go political in South Korea
Lee is facing an election at the begin of March. To prop up the party ’ randomness coffers, the DPK is set to send photos and policies of Mr. Lee to supporters, who will be able to buy them as NFTs. According to an explanation of the party, these serve as a kind of bond that holders can exchange with early individuals.
South Korea’s first crypto exchange is bringing another first for the country with the launch of its non-fungible token (NFT) marketplace.
South Korean-based cryptocurrency exchange Korbit has announced the launch of an NFT marketplace. The announcement reportedly marks the first NFT marketplace to launch in South Korea.
All sales will be via Ethereum (ETH).
In a statement, the CEO of Korbit Oh Se-jin said that “the local NFT market is still in a fledgling stage, compared to global ones.”
While Korbit will be the first NFT marketplace in Korea, there have been some private sales that have preceded this announcement.
South nft jaemyung nftsjaehyuk the koreatimes www
These NFTs would have the picture of the politician alongside his campaign promises.
It was also revealed that the crypto donations would be later converted into fiat currencies using an unnamed crypto exchange and deposited into the official contribution account.
Speaking on the credibility of collating and processing crypto donations, Lee Kwang-Jae of the campaign committee reiterated that “the donations will be managed in compliance with the Public Official Election Act and the Guidelines on Management of Political Funds.”
Additionally, Park Young-Sun of the Democratic Party shared her thoughts on Lee’s crypto campaign donations which she attributed to the party’s crypto-friendly policies. As the party’s digitization policy head, she will be meeting with gaming sharks next week to discuss the fusion of NFT and the gaming industry in South Korea.
These would reportedly include the sale of NFTs that exceed $45,000 or a cumulative total of sales that eclipses that figure.
The tax has been on the table for more than a year now and is far from the only new restriction South Korea has added. One of the others is the Act on Reporting and Using Specified Financial Transaction Information that began in mid-2019.
The act revolves around giving more legal options to Korea to combat money laundering. Essentially, it required crypto exchanges to submit user information for their client base to officials.
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The leading candidate for the South Korean presidency has announced a fundraiser based on non-fungible tokens.
Per the Korea Times’ report, Lee Jae-myung, the ruling Democratic Party’s candidate in the 2022 presidential elections, will be giving NFTs to donors to his campaign. The news comes despite earlier concerns that such fundraises may violate the Political Funds Act or the Public Official Election Act.
Donors will not exactly be buying NFTs. They will be receiving NFTs including a picture of Lee and a list of his policies as a kind of memento for their donation.
The move is part of broader outreach from the Lee campaign to young voters. This push has included talks in support of digital assets as well as advocacy for NFTs in gaming. The Lee campaign is calling it the first use of NFTs for a national presidential campaigns finance in the world.
Lee said that Korea should lead the ball-shaped course of integrating games with NFTs, alternatively of denying the engineering ’ second being.
Read more: How Do PayPal and Venmo’s New Crypto Fees Stack Up?
Politicians and crypto…an unexpected love story?
This news is all the more thwart, considering that Korea has been quite rigorous in regulating cryptocurrencies, which resulted in the ill-famed “ Kimchi premium. ” This premium is a mark-up on the ball-shaped commercialize price of Bitcoin and other cryptocurrencies, as Koreans are banned from using external exchanges, and any interaction between the crypto ecosystem and the traditional fiscal system is subject to stern capital controls.
Read more: 9 Best Penny Cryptocurrencies to Watch Now | The Motley Fool
The previous government imposed strict regulations on crypto as South Korea emerged as the world’s third-largest crypto trading market.
In 2017, the South Korean government introduced rules that banned Bitcoin futures trading and only allowed cryptocurrency trades only from “real-name bank accounts” — traders must open a real-name account at the same bank as their crypto dealer in order to make deposits or transfers from their e-wallets.
In January, Yoon vowed to deregulate Korea’s crypto industry to promote its growth.
In a country where the older generation tends to stick to their political party allegiance, Yoon’s crypto-friendly campaign was designed to appeal to young men who are “squeezed by the widening wealth disparities during five years of the previous administration”, according to Nikkei Asia.
According toNews1, they noted that as “it was unclear whether NTF was included in virtual assets”, it could “lead to tax evasion.”
South Korea’s crypto tax explained
As per South Korea’s new rules, crypto gains are subject to a 20% tax if the total income is over 2.5 million KRW ($2,100) over a year. While the finance ministry had initially planned to impose the tax starting October 1, it was delayed due to “lack of taxation infrastructure,” reportedthe Korea Times.
“Any further delay in the already postponed enforcement will lead to the loss of public trust in government policy and undermine stability in the legal system,” Hong said on Wednesday. He was speaking at the National Assembly’s annual review.
Even as the NFT industry has grown exponentially this year, South Korea is yet to classify them as taxable assets.
The South Korean government is taking a stand against NFTs, attempting to block the release of new crypto-inspired play-to-earn mobile games and demanding the removal of existing ones from the Apple and Google app stores.
Play-to-earn games have recently been growing in popularity among crypto enthusiasts, as they use similar blockchain technology and allow players to invest and make money just by playing. Most of these apps typically require users to first purchase non-fungible tokens (NFTs), which can then be used to play and earn in-game rewards.
But according to South Korean law, games that offer prizes worth more than 10,000 Korean won ($8.42) are banned throughout the country, and the government has introduced tough regulations regarding gambling, gaming, and age ratings.
The Game Management Committee (GMC), which is part of South Korea’s Ministry of Culture, Sports and Tourism, has described pay-to-earn games as speculative money-making schemes and has made a move to outlaw ones which require in-app purchases in order to play.
P2E game developers have already had a hard time releasing their apps on the South Korean market, as they have struggled to obtain an age rating for their products, which is a requirement for them to be listed.
“It is reasonable to keep P2E games from getting age ratings under the current law because cash rewards in games can be considered prizes,” said a GMC spokesperson.
NFT Video games in South Korea Facing Ban despite Popularity.
South Korea has one of the leading NFT based games in the industry, yet these video games are still banned in the country. MIR4 is a famous play-to-earn game developed by WeMade, a South Korean-based video game studio.
The game ranks in the top ten on Steam with more than 85000 concurrent players. However, the fan base and players of MIR4 in South Korea cannot experience the video game to its fullest.
The local version of the game does not include play-to-earn elements that are available in the international version of the game. The reason behind this is the ban that is in place by the South Korean authorities.