Key Points
- South Korean presidential candidates push for legalization of spot crypto ETFs and a clear legal framework for cryptocurrencies.
- Proposals include the launch of a Korean Won-backed stablecoin and the introduction of the Digital Asset Basic Act.
As the 2025 presidential elections in South Korea approach, cryptocurrency is becoming a key issue for all candidates. This reflects a significant shift in political attitudes towards digital assets.
Presidential Candidates Embrace Crypto
Leading the charge is Lee Jae-myung, the current frontrunner. He is advocating for the creation of a stablecoin backed by the Korean Won. Jae-myung believes this could bolster the domestic economy and lessen reliance on foreign currencies such as the U.S. dollar.
Other candidates, including Kim Moon-soo, are also backing the legalization of spot crypto ETFs. This is indicative of a broader change in the nation’s financial strategy.
Despite speculation that this focus may be influenced by recent U.S. developments, there is no evidence to support this. Instead, it suggests that South Korea is forging its own path in cryptocurrency policy.
Legalizing Spot Crypto ETFs
Both candidates are advocating for the legalization of spot crypto ETFs, which would allow assets like Bitcoin (BTC) to be traded on South Korean stock exchanges.
Lee Keun-ju, the Head of the Korea Fintech Industry Association, has commended these efforts. He sees them as a positive step towards integrating digital assets into the country’s financial markets.
Furthermore, Keun-ju has proposed the establishment of a Won-backed stablecoin market as a strategic way to prevent capital flight.
Other candidates are echoing these views. Han Dong-hoon, another leading presidential candidate, has recently called for deregulation of crypto and the approval of Bitcoin ETFs.
Digital Asset Basic Act
To support these initiatives, the government plans to introduce the Digital Asset Basic Act. This legislation aims to provide a comprehensive legal framework for cryptocurrencies in Korea.
It will address important aspects such as stablecoin regulations and the issuance, trading, and oversight of digital assets. If passed, it could create a more transparent, equitable, and progressive financial system in the country.
These rapid developments and the clear shift in political mindset suggest that South Korea may soon set a precedent for other nations. This is particularly true for those previously critical of crypto, prompting them to start incorporating digital assets into their own financial systems.
