Martial law chaos is continuing to wreak havoc on South Korea’s crypto sector, with the National Assembly vowing to halt all work on related legislation for the foreseeable future. Per Chosun Ilbo , the National Assembly voted in favor of a legal amendment that will delay the launch of crypto tax until January 2027. However, both major parties agreed on the details of this amendment prior to President Yoon Seok-yul’s ill-fated decision to declare martial law on December 3. South Korean opposition leader Lee Jae-myung sought to force through a highly contested budget Tuesday in a show of political clout as he seeks to build momentum for another impeachment bid against President Yoon Suk Yeol https://t.co/g2kIskvpFx — Bloomberg (@business) December 10, 2024 Martial Law Chaos Derails Crypto Progress The media outlet reported that the National Assembly, which is now under heightened pressure to approve next year’s budget, has “moved into full-blown impeachment mode.” The crypto industry is still “waiting for legislative clarity.” But firms are now “braces for another sluggish wait” for change, Chosun wrote. The crypto tax law passed in the very nick of time, gaining approval on the very last day of the current plenary session. The bill had been slated for debate on December 4. Had the Assembly failed to vote on December 10, crypto tax would have launched as scheduled on Janaury 1, 2025. An All-stop Order The media outlet wrote that all “virtual asset-related” issues have now been pushed back in priority. It added that parliamentarians have agreed to an “all-stop” on all crypto-related matters. This means that a number of pressing crypto-related matters will likely remain in limbo until mid-2025. These include: South Korea’s long-standing initial coin offering (ICO) ban, which Yoon promised to “review” prior to his election A decision on whether domestic companies can buy crypto with their balance sheets A decision on securities token offering (STO) legalization, another Yoon manifesto promise A ruling on the legality of Bitcoin spot ETFs The newspaper wrote that all these issues and more “have been buried under the impeachment issue, making it impossible to expect a vote” on any of them. Instead, the National Assembly is “focusing on issues such as martial law, impeachment, and the next presidential election.” LIVE: Thousands of protesters are expected to gather in front of the parliament in Seoul, South Korea https://t.co/p4HiW6AeAs — Reuters (@Reuters) December 10, 2024 A Lifeline for Corporate Crypto Investors? The situation is not completely hopeless for crypto firms, however. The Financial Services Commission has recently “finalized step-by-step guidelines ” for corporate crypto accounts. In theory, it could implement most of these steps without relying on the National Assembly’s help. The newspaper wrote that STO-related discussions would “not progress until the first half of next year,” despite the fact that both parties broadly agree on the matter. Some officers, soldiers resisted martial law orders in their own ways https://t.co/yspytERgLT — The Korea Times (@koreatimescokr) December 10, 2024 Moving Overseas? An unnamed National Assembly “insider” was quoted as stating: “The martial law crisis has taken all of the National Assembly’s attention. So it is hard to justify dealing with virtual assets now, even though there are many outstanding bills that need work. We should view this as an indefinite postponement. It will last at least until the impeachment situation is resolved.” However, the outlet noted that there are now “concerns” that more domestic “blockchain and virtual asset companies and investors” will “relocate overseas due to the martial law situation.” Dealing with the aftermath of the short-lived martial law in South Korea appears much more complicated that it may seem. #MartialLaw #SouthKorea https://t.co/xZp3Iu5JRB — The Korea Herald 코리아헤럴드 (@TheKoreaHerald) December 10, 2024 Crypto players have urged Seoul to roll out clearer guidelines. But it seems they will be left waiting until mid-2025 for answers. “There is a lot to discuss in the cryptoasset sector. But the current situation is regrettable. In the US, President-elect Donald Trump is looking to appoint people to handle virtual asset policies before he even takes office. It is urgent for South Korea to act quickly, too.” Kim Gap-rae, Senior Researcher, Capital Market Research Institute The post Martial Law Chaos: South Korea Pauses ‘All’ Work on Crypto Legislation appeared first on Cryptonews .
