A day to remember: Cryptocurrency takes over the United States, Dubai, and South Korea

Last night and this morning, the cryptocurrency market ushered in a major change, "taking over" the United States, the United Arab Emirates and South Korea overnight.

On March 9, 2022, local time in the United States, US President Biden officially signed the digital asset executive order.

Biden's executive order details the U.S. digital asset regulatory action framework from multiple aspects, including policies, goals, coordination among U.S. government agencies, measures to protect consumers, investors and businesses, promoting financial stability, reducing systemic risks, restricting illegal finance, and promoting international cooperation and U.S. competitiveness.

After the digital asset executive order was issued, it was hotly discussed by people in the cryptocurrency community.

Tom Emmer, Republican Congressman from Minnesota, analyzed that encryption, tokenization, blockchain, NFT, smart contracts and stablecoins are powering a more viable economic structure with personal autonomy. As a country, we must develop a strategy to promote this innovation.

Grayscale said that overall, we believe that the executive order is optimistic about the growth of crypto in the United States, and the government recognizes that the emerging digital asset industry is very important for maintaining global financial and technological competitiveness. To sum up the EO in one sentence: 'The government recognizes that crypto is a legitimate part of the economy and will conduct further research on the risks.

Dubai, the economic and financial center of the Middle East, may become a crypto hub.

On March 9, Dubai approved a new virtual asset law, the Dubai Virtual Assets Regulation Law, and created the Dubai Virtual Assets Regulatory Authority. This is a key step in the ambitions of Sheikh Mohammed bin Rashid Al Maktoum, the ruler of the Emirate of Dubai and Deputy Prime Minister and Prime Minister of the UAE, to transform Dubai and the United Arab Emirates as a whole into a hub for the cryptocurrency industry.

The 56-page legal proposal focuses on crypto tokens, which excludes non-fungible tokens (NFTs), central bank digital currencies (CBDCs), and utility tokens such as gaming tokens with “non-financial” uses. The law “aims to create an advanced legal framework to protect investors” and design “well-founded international standards” for virtual asset industry governance, which will promote responsible business growth under prudent supervision.”

Meanwhile, the Dubai Virtual Assets Regulatory Authority has been established. The agency will be the licenser and regulator of the cryptocurrency industry in Dubai and most other free zone territories. It will work with the Central Bank of the United Arab Emirates and the Securities and Commodities Authority. The Dubai Virtual Assets Regulatory Authority will oversee the issuance and trading of virtual assets, and companies providing cryptocurrency services must first obtain its approval. Among other things, the new regulatory entity will also "monitor transactions and prevent manipulation of virtual asset prices."

On the same day, South Korea also welcomed a new cryptocurrency-friendly president.

In the early morning of the 10th, Beijing time, the South Korean election, which was called the "most intense in history", finally came to an end: Yoon Seok-yeol, the candidate of the largest opposition party, the People's Power Party, defeated Lee Jae-myung, the candidate of the ruling Democratic Party, and won.

Cryptocurrency was one of the hottest topics during the election, with both major candidates announcing crypto-friendly stances in an attempt to win over young voters.

At a cryptocurrency conference in January, Yoon said that “unrealistic and unreasonable” regulations must be overhauled to “realize the unlimited potential of the virtual asset market.”

Yoon expressed his desire to attract and develop crypto "unicorns" - startups valued at $1 billion or more. He also pledged to increase cryptocurrency profits by raising the proposed capital gains tax threshold to 52.4 million won ($42,450). Starting in 2023, crypto gains of more than 2.5 million won ($2,024) earned in a year would be taxed at 20%.

Yoon also promised to "take legal measures to confiscate cryptocurrency profits obtained through illegal means and return them to the victims."

Kim So-young (김소영), a professor of economics at Seoul National University and the economic brain of South Korea's next president Yoon Seok-yeol, also expressed his commitment to formulate various development plans for the virtual asset market and to set up a department specifically responsible for deregulation.

Although the Moon Jae-in government, including former Justice Minister Park Sang-ki, has implemented a high-intensity virtual currency regulatory policy, Yoon Seok-yeol's election also means that the next government will shift the direction of virtual currency policy to revitalize prosperity.