South Korea Crypto: The Largest Mutual Aid Association Refutes Bitcoin ETF investment rumours

The Korea Teacher’s Credit Union, which is the largest mutual aid association in South Korea, responsible for approximately 40 trillion won ($34.3 billion) of assets as of June, has denied the market rumors about its investment in Bitcoin ETF.

While Bitcoin ETF news came as a pleasant surprise to the crypto community in the nation, the follow-up denying any such plans has neutralized the current political and financial landscape in lieu of KTCU’s long-standing conservative financial approach. Furthermore, since the country is undergoing a crypto crackdown, an investment in Bitcoin by an organization as traditional as KTCU appeared as a blown out of proportion update.

“The KTCU has never reviewed an investment in a bitcoin-related ETF, and will never have a plan to do so,” KTCU said in a statement.

Earlier today, social media was flooded with news of the South Korean Teacher’s Credit Union’s upcoming investment in Bitcoin-backed Spot Exchange-Traded Fund (ETF). The KTCU, which is responsible for teachers’ welfare and financial benefits in the nation were to become the first South Korea institutional investor with exposure to cryptocurrency by 2022, according to former fake news.

BREAKING: The Korea Teacher's Credit Union, which has more than $45 billion in assets, is now purchasing bitcoin for their balance sheet.

(h/t @iamjosephyoung)

— Pomp 🌪 (@APompliano) October 25, 2021

South Korean government gets criticized for Crypto tax policy

Furthering its crackdown on cryptocurrencies, the Korean government is determined to implement a hefty crypto tax by 2022. However, along with internal disputes, the anti-crypto stance by the authorities has received additional backlash from the opposition. Earlier this month, the People Power Party had drafted a proposal to tone down capital gain taxes on cryptocurrencies and further proposed the postponement of the crypto taxation law by one year, i.e., 2023.

“It is not right to impose taxes first at a time when the legal definition of virtual currency is ambiguous…The intention is to ease the tax base to the level of financial investment income tax so that virtual currency investors do not suffer disadvantages.”, The Korea Herald quoted Rep. Cho Myoung-hee of the People Power Party.