Native & Global Political Rivalries Fuel a Crypto Boom: How America, South Korea, & Russia Are Leading the Way
The last 24 months showed that the situation in the crypto space changed drastically. Before that timeframe, this sector was operating under a fully uncertain regulatory environment, but now many rules & laws allow crypto companies to operate business with much better clarity.
Crypto space in South Korea
On June 30, 2023, South Korea’s financial regulatory body, the Financial Services Commission (FSC), passed a new Act for the crypto sector. The new act aimed to ensure crypto user protections, transaction transparency, and market discipline. However, this act was planned to be implemented in June 2024, but it is still pending.
The tax authority in South Korea initially in 2021 planned to implement a 20% tax on the profit generated from cryptocurrency trading. However, backlash from industry stakeholders and concerns about its impact on investors led to repeated delays. Some insiders claim that the decision was based on political benefits, as the government may face opposition to implementing high crypto taxes. Because of these political rivalries, the implementation of tax policy was first postponed to 2023, then to 2025, and now to 2027.
However, some people call it an uncertain situation for the crypto sector in the jurisdiction of the South, but the majority of the crypto investors are happy, as they are not facing high tax charges.
Crypto Sector evolving in the United States of America (USA)
In 2022, the crypto space was under a very terrible situation, where the crypto companies noted that the major banks distanced their banking services from the crypto space.
The downfall of many banks, including some crypto-friendly banks, was not associated with crypto companies, but the majority of the crypto critics called the crypto sector responsible.
In between 2022 to 2023, many crypto companies sued by the United States Securities and Exchange Commission (SEC) over providing Crypto trading services.
But the whole situation started changing in mid-2023, following the application filed by the world’s top fund manager, BlackRock, for the Bitcoin spot ETF product. By the end of 2023, many ProCrypto political leaders started to endorse crypto & praise Bitcoin, to get some political benefit from the investors belonging to the crypto space.
In particular, former US president Donald Trump and American businessman Vivek Ramaswamy showed big support for the crypto sector. Under the influence of Dogecoin fan & Tesla CEO Elon Musk, Trump secured a major victory in the US presidential election.
Notably, the election also forced the top US presidential candidate, Kamala Harris, to show support for this innovative sector.
Now, the situation for the crypto space is going to take another big turn, as Donald Trump is going to assume the presidency office in mid-Jan 2025 & aims to allow crypto-friendly bills.
Crypto adoption In Russia
As we know, between Dec 2021 to Jan 2022, the Russian central bank was working on a new framework to implement a blanket ban on crypto space, but the whole game changed after the start of the Russia vs Ukraine war in late Feb 2022.
On the one hand, the majority of the countries supported Ukraine & even many crypto investors from different countries donated more than $100 million worth of cryptocurrencies to Ukraine to provide aid for the Ukrainian military against Russian invasion.
On the other hand, Russia faced financial sanctions by the Western countries. To bypass these sanctions, Russian officials decided to adopt Bitcoin & some flagship cryptocurrencies or similar technology.
In 2024, Russian President Vladimir Putin signed a new law to expand state control over the Cryptocurrency sector, & provide a crystal clear regulatory environment for crypto mining operations & corresponding financial tracking.
Just a few days ago, the Russian president said that no one can ban Bitcoin & other digital assets. Indirectly he said that Russia & other Russian allies can easily bypass any financial sanction.
