ICONLOOP takes a look at newly elected South Korean president Yoon Suk-yeol’s pledges and policies regarding blockchain.

On its official blog, ICONLOOP summarizes Yoon’s major policies on digital assets (well, they basically reprint a summary from some law firm’s newsletter, but same difference), and predicts how the blockchain and digital asset industry will change in 2022.

Institutionalizing digital assets through legalization

Enacting the “Basic Law on Digital Assets”

  • Confiscating through legal procedures all profits made from unfair coin transactions (mis-selling, price manipulation, cross trading, etc.)
  • Adoption and expansion of an insurance system to cover hacks and system errors.
  • Creating a safe investment platform and introducing a disclosure system.
  • Cultivating specialized financial bodies linking digital asset transaction accounts and banks.
  • Transitioning the regulatory system to enable the unlimited potential of the digital asset market though negative regulations and policy tenor.

Easing taxes on virtual assets

Raising the tax threshold to KRW 50 million.

  • Taxes expected to be levied after implementing the necessary system
  • Tax threshold for capital gains to be raised to KRW 50 million, the same as stocks.

Gradual permitting of ICOs

Even while permitting ICOs, the authorities will first introduce an IEO (Initial Exchange Offering) system with safety mechanisms to protect investors from pyramid schemes and other dangers.

Building and cultivating governance of the digital asset market

Founding the Digital Industry Promotion Agency (provisional name)

Would serve as a control tower of NFTs and other new kinds of digital industries by building a system of cooperation between the relevant government bodies.

Cultivating the “new concept digital asset market” by activating NFT transactions

Supporting the development of blockchain-based technologies and preemptively preparing the systemic base for the appearance of new kinds of digital assets.

ICONLOOP said Yoon’s policies regarding virtual assets are, taken as a whole:

  1. Cultivating the market
  2. Protecting investors
  3. Institutionalizing digital assets to do 1 and 2.

The company said since the institutionalization of virtual assets — already expanding since the adoption of the Act on Reporting and Using Specified Financial Transaction Information — would likely accelerate, and that it was looking forward to more favorable policies and views on digital assets.

ICONLOOP said it is making several preparations to expand its business in earnest beyond its existing blockchain technology-based B2B activities such as DID to providing virtual asset services and service tools.

ICONLOOP noted that it has launched development of its NFT-based interchain game platform SPERA, signing a deal with 2bytes, a Korean startup specializing in providing global services for games.

The company said it has several other business expansion plans in the works, too. ICONLOOP will let us know when it’s ready.