The new President of South Korea, who advocates cryptocurrency, did not receive support

One of the promises Yoon Seok Yeol made to his voters was to implementa number of policies favoring cryptocurrencies.Yoon, who won in March and took office this month, said he would raise the tax threshold for cryptocurrency investment income to 50 million won (about $38,922).

However, the National Research ServiceAssembly of South Korea, which provides lawmakers with information and analysis on legal and policy issues, classifies cryptocurrency as a virtual asset. The tax threshold for income derived from virtual assets should be 2.5 million won ($1,946) at a tax rate of 20%.

The tax rate, the assembly approves, is fixedat the same level as income from financial investments, so this asset class is not subject to high taxes. But the proposed threshold is much lower than Yun's.

The new tax rules are due to come into effect in 2023 and a new digital asset regulator will be established. The income tax system in the country was introduced at the end of 2020.

The new president also supports the NFT.And he also proposed the introduction of a new state body that will be responsible for regulating digital assets. This is how you vote for a candidate and it turns out, God forbid, these changes will catch his presidential term. Perhaps he wanted to attract the young electorate in this way.

South Korea is one of the most crypto-active countriespeace. According to a study by the country's main financial regulator, by the end of 2021, the market has grown to 55.2 trillion. won (45.9 billion dollars), and the number of users reached almost 5.58 million, or about 10% of the country's population.

Cryptocurrency market in South Korea is onrise, but partly due to regulatory restrictions. Dominated by five large local exchanges - Upbit, Bithumb, Coinone, Korbit and Gopax. Foreign and smaller players, on the other hand, find it harder to meet the government's requirement to partner with local commercial banks.

Despite significant support for digitalassets from the public and the government, which could indicate that President Yoon's proposals may take effect in the future, recent issues, such as with Terra, have affected Korean investors and led to a call for stricter regulation in the crypto industry. In the short term, this could slow the implementation of Yun's proposals.