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With South Korea's presidential election scheduled for June 3, candidates are intensifying their efforts to promote policies regarding cryptocurrencies, which are highly popular among voters in this technologically advanced nation.
Both major political parties have included the legalization of spot Bitcoin exchange-traded funds (ETFs) in their platforms. These proposals aim to gain the support of South Korea's estimated 16 million crypto investors, who represent about 36% of the country's eligible voters.
Currently, South Korea is one of the leading world markets for Bitcoin, with the market value reaching 2.7 trillion KRW, equivalent to the business value of the entire KOSPI. With 16 million cryptocurrency investors in South Korea, the growing influence of digital assets in the country’s economy has made crypto policy a central issue in the upcoming presidential election.
In that regard, candidates are promising the moon, knowing fully well that they stand a better chance of winning the hearts of these voters. Lee Jae-myung, leader of the Democratic Party, announced on May 6 his commitment to legalizing spot Bitcoin ETFs, alongside promises to reduce transaction fees and strengthen consumer protections in the crypto market. Lee’s proposal is designed to offer young citizens of South Korea a safer opportunity to invest in digital assets, while many of them are interested in constructing wealth.
The ruling party, the People Power Party, has also promised spot Bitcoin ETFs as part of its agenda. In addition, the party plans to eliminate the “one-exchange-one-bank” policy, which restricts cryptocurrency exchanges to working with only one bank for real-name verification.
The current regulations in South Korea have been considered unsuitable for cryptocurrency enthusiasts. The one-exchange-one-bank rule is seen as a significant barrier to the growth of the crypto market. When adopted, the People Power Party made this regulation, which brought competition into the market and benefited both exchanges and users. Besides, they have called for establishing a legal entity framework for corporate trading of virtual assets, meaning more direct corporate use of cryptocurrencies.
They also cover transaction fees and investors’ protection, focusing on forming a safe environment for young people in the Republic of Korea to invest in digital assets. His plans for spot Bitcoin ETFs seek to bring South Korea’s crypto policies into equality with those of other global economies, such as the United States of America, which has endorsed spot Bitcoin ETFs.
