The Democratic Party of Korea, Korea’s ruling party, has announced that it will issue NFTs to raise funds for the forthcoming presidential elections. The NFTs will include Lee Jae Myung’s picture, which will serve as a bond and allow individuals to exchange NFTs with each other.
NFTs in the Presidential Campaign
DPK will start the initiative later this month. Once the party issues NFTs, it becomes the first political party to use digital assets and collectibles for a political cause. While confirming the developments, a lawmaker from the ruling party stated that
“Our presidential candidate is also planning to raise funds using NFTs.”
DPK stressed that NFTs are not illegal for raising funds for political campaigns. Rep. Lee Kwang Jae spoke on behalf of the party and said that party officials had been in talks with each other as well as government institutions for more than 8 months.
“Over the last eight months, we discussed this matter with NEC and other government agencies. The guidelines on management of political funds and the Public Official Election Act will govern how the donations are managed.
Is it a political play?
The elections will take place on March 9th 2022. Lee Jae Myung is the candidate for DPK. It can be argued that the party’s endorsement for NFTs is a strategy to win over younger voters, particularly those in their 20s or 30s. This group is the most active in crypto and NFT. The presidential candidate is still supportive of NFTs in the gaming industry, and stated that Korea should be the world leader in integrating NFTs with virtual assets.
Rep Lee Kwang Jae (another member of the Democratic Party of Korea) had earlier stated that he would accept campaign donations in cryptocurrency. Initial donations were accepted in Bitcoin or Ethereum.
Korea’s softening attitude
South Korea has been trying to establish strict regulations for the crypto and digital asset markets since 2021. One regulation proposed a 20% tax for those who made more than $42,000 in cryptocurrency trading profits. The ruling Democratic Party proposes a delay in the implementation of regulations due to a lack of a plan for implementing the taxing policy.
South Korea had previously tightened controls on crypto exchanges. Market watchers stated that the September 2021 crackdown could cause losses of around $2.6 billion.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.