In the midst of the current crypto legal chaos in South Korea, NFTs will be used to fund a presidential campaign.

Highlights:

  • This will be the first election in which NFTs will contribute.
  • Donors to the campaign will get digital images of Lee as non-financial tokens (NFTs).
  • Cryptocurrency contributions would then be welcomed for financing.

Lee Jae-Myung, the presidential nominee of South Korea’s ruling Democratic Party of Korea (DPK), is said to have chosen to include cryptocurrency into his candidacy. Lee will issue non-fungible tokens (NFTs) to followers that give money to his political campaign in order to raise funds and acquire popularity among the general public. NFTs were virtual artifacts based on the blockchain network that are typically inspired by music, artwork, or video game avatars, among other things.
DPK officials told Korea Times that starting this month, the DPK would begin sending digital pictures of Lee’s photographs and policies to campaign contributors.

Those NFTs were meant to act as a form of security, enabling owners to trade those with others and help Lee’s project gain traction.

Utilizing NFTs to generate cash doesn’t really contravene the country’s Political Funds Act or the Public Official Election Act, according to Seoul’s National Election Commission (NEC).

The DPK legislator reportedly stated that cryptocurrency contributions would be allowed starting in mid-January. NFT coins would be distributed as receipts for these donations, according to Lee Kwang-jae.
While symmetric encryption regulatory concerns have developed in South Korea, elements of the cryptocurrency world being engaged in presidential election campaigns is a welcome change of pace.

South Korea has already been looking for measures to regulate cryptocurrencies in order to prevent the illegal usage of decentralized digital currencies.

In September 2021, the government passed a new law requiring crypto exchanges to register with the Financial Intelligence Unit and work with institutions to verify screen names.

And over 60 bitcoin exchanges in South Korea have alerted users that trading services have been suspended in part or whole.

Taxing and regulating NFTs has also been a contentious matter of debate amongst South Korean officials.
During a parliamentary audit session in October, finance minister Hong Nam-ki stated NFTs must not be classified as cloud services.

The Financial Services Commission (FSC) of South Korea is equally undecided regarding choosing whether or not to classify NFTs as crypto assets.

According to the South Korean daily Hankyung, the cryptocurrency industry in South Korea is experiencing its second statewide boom since 2018, with over two million South Koreans dabbling in the space.

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