South Korea’s ruling Democratic Party of Korea (DPK) presidential candidate Lee Jae-myung has reportedly decided to give a crypto touch to his election campaign. To raise funds as well as gain popularity among the masses, Lee will issue non-fungible tokens (NFTs) to his supporters who donate their money to his election campaign. NFTs are digital collectibles, often inspired by music, artwork, or video game avatars, built and secured on a blockchain network, among other things.
Starting this month, DPK will begin releasing digital images featuring Lee’s photographs and policies to campaign donors, Korea Times DPK officials said.
In NFT Intended to serve as a kind of bond, allowing their holders to exchange them with other individuals and further Lee’s campaign.
According to Seoul’s National Election Commission (NEC), using NFTs to raise funds does not violate the country’s Political Fund Act or the Public Official Elections Act.
Recently, a DPK MLA said that in mid-January, donations in cryptocurrency will also be accepted. As a receipt for these donations, NFT pieces will be issued, Lee Kwang-jae said.
Elements of the crypto space being active in South Korea’s presidential election campaigns are a refreshing change of events amid crypto-related regulatory concerns in the country.
To check illegal uses of decentralized crypto assets, South Korea is looking for ways to enforce regulations on cryptocurrency.
In September 2021, a new rule came into existence in the country which mandated crypto exchanges to register with the Financial Intelligence Unit and partner with banks to ensure real name accounts.
More than 60 cryptocurrency exchanges in South Korea notified customers of partial or complete suspension business services,
Taxing and regulating NFTs has also been a controversial topic of discussion among South Korean authorities.
In October, Finance Minister Hong Nam-ki said during a parliamentary audit session that NFTs should not be classified as virtual assets.
South Korea’s Financial Services Commission (FSC) is also in a dilemma over whether or not to classify NFTs as digital assets.
According to the South Korean daily hankyungThe cryptocurrency sector is enjoying its second nationwide boom in South Korea since 2018, with over two million citizens experimenting in the region.
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