In a dramatic change in South Korean politics, the impending presidential election has highlighted cryptocurrency policies, specifically the legalization of spot Bitcoin exchange-traded funds (ETFs). Top contenders are using pro-crypto platforms to reach out to the country’s large pool of digital asset investors.
Lee Jae-myung’s Pro-Crypto Stance
Democratic Party presidential candidate Lee Jae-myung has vowed to legalize spot Bitcoin ETFs during his presidency. Introduced on May 6, his plan will help make investments safer, particularly for young investors who want to build assets. Aside from ETF legalization, Lee’s campaign involves lowering crypto transaction fees and further strengthening consumer protection policies. He also wants to set up an integrated monitoring system to regulate virtual asset investments transparently and securely.
This is Lee’s initial venture into crypto-related policy throughout his campaign. His party had earlier pushed for the same in the 2024 general election, although it was slow to progress. Present polls show Lee ahead with around 42% support, making him a front-runner in the June 3 election.
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Crypto Policies as Electoral Strategy
The focus on cryptocurrency policies indicates the increasing power of digital asset investors in South Korea. An estimated 16 million South Koreans, about 31% of the country’s population, engage in cryptocurrency trading. The two main political parties have then included crypto-friendly policies in their agendas in recognition of this.
The People Power Party, which is in power, has also signaled its intentions to legalize spot crypto ETFs, remove the one-exchange-one-bank rule, and create a regulatory framework for stablecoins. This bipartisan interest in cryptocurrency regulation reflects a wider trend towards bringing digital assets into the country’s financial system.
With the election looming, the candidates’ positions on regulating cryptocurrency, and most importantly, Bitcoin ETFs, are likely to play a key role. They will likely influence the voters, particularly the youth and digital asset investors.
Also read: SEC’s May 12 Crypto Roundtable: Exploring Tokenization and Regulatory Evolution
