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South Korea’s Martial Law Derails Critical Crypto Reforms

Author: Content Editor
South Korea's declaration of martial law has put a halt to the country's efforts to regulate and reform its crypto sector. Key reforms, such as legalizing securities token offerings (STOs) and introducing real-name corporate crypto accounts, have been put on hold indefinitely. This has left the industry in a state of uncertainty. The focus of the National Assembly has shifted to impeachment proceedings and next year's budget, leaving crypto legislation on hold. The implementation of crypto taxation has also been postponed until 2027. Despite bipartisan support for reforms, progress has been stalled as financial regulators focus on stabilizing traditional markets. The martial law crisis is expected to last until the impeachment situation is resolved. Following the declaration of martial law, Bitcoin prices on South Korea's largest crypto exchange, Upbit, experienced a significant drop before recovering.

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