South Korea elects a pro-Bitcoin president! Is the Cryptocurrency Trading powerhouse opening a new era for Crypto Assets?

On June 3, 2025, South Korea's political landscape experienced a significant turning point. The opposition Democratic Party candidate Lee Jae-myung won the presidential election with nearly 50% of the vote (specifically 49.42%), defeating his opponent Kim Moon-soo from the right-wing People Power Party, who garnered 41.15% of the votes, and successfully became the 21st president of South Korea. With the inauguration of this new president, who holds a positive stance on cryptocurrencies, on June 4th, one of the world's major cryptocurrency markets—South Korea—is expected to see a significant shift in its cryptocurrency policy landscape. The "coin trading powerhouse" may thus embark on a brand new era of cryptocurrency. Favorable policies This year's South Korean presidential election has largely become a contest to gain the support of the country's large number of cryptocurrency traders and industry participants. About one-third of South Korea's population holds digital assets, and data from the Bank of South Korea shows that the total amount of cryptocurrency assets held by the public reaches as high as $74.5 billion. This vast user base and market size make it impossible for any candidate aspiring to the presidential throne to ignore the demands of the cryptocurrency community.

Against this backdrop, Lee Jae-myung and his main competitors have all coincidentally adopted a more proactive pro-cryptocurrency stance during the campaign, promising to ease cryptocurrency regulations and expand access to digital assets. During the campaign, Lee Jae-myung clearly proposed a series of commitments aimed at promoting the development of South Korea's cryptocurrency industry, among which the most noteworthy to the market include: Promoting the legalization of cryptocurrency spot ETFs: Lee has vowed to promote the legal listing and trading of spot exchange-traded funds (ETFs) of mainstream cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) in South Korea. Since the U.S. Securities and Exchange Commission (SEC) approved Bitcoin and Ether spot ETFs, financial regulators in many countries and regions around the world are considering following suit. Although South Korea's financial authorities have expressed similar intentions, under former President Yoon Suk-yeol, progress has been slow due to the cautious attitude of the Financial Services Commission (FSC), and South Korea is still completely banning the issuance and trading of crypto ETFs in any form. Lee Jae-myung's ascension to power is expected to break this deadlock. It is worth noting that his opponent Kim Moon-so and his People's Power Party also reached a rare agreement with Lee Jae-myung on this issue, and both pledged to promote the legalization of bitcoin spot ETFs within this year. Allow national pension funds to invest in cryptocurrencies: Lee Jae-myung also proposed to allow South Korea's National Pension Fund, which amounts to 884 billion dollars, to invest in cryptocurrencies. If this significant proposal is realized, it will undoubtedly inject a huge influx of institutional funds into the cryptocurrency market in South Korea and globally, greatly enhancing the status of cryptocurrencies as a legitimate investment asset. Accelerating the development of the Korean Won stablecoin: Lee Jae-myung and his Democratic Party have shown keen interest in developing a stablecoin backed by South Korean won (KRW). Min Byeong-deok, chairman of the Digital Assets Committee of the Democratic Party of Korea, believes that in the context of the increasing dominance of the global stablecoin market, especially the US dollar stablecoin, South Korea must quickly establish its own won stablecoin system to prevent domestic capital outflows and take an advantageous position in the battle for global stablecoin hegemony. Min Bingde even believes that the potential of stablecoins in the near future may be "greater than artificial intelligence or semiconductors". Lee Jae-myung himself publicly stated last month that it was imperative to establish a "won-denominated stablecoin market." This move is similar to the "STABLE Act" and "GENIUS Act" of the Trump administration's promotion of US dollar stablecoin supervision. Improve the legal framework for digital assets: Under the leadership of Lee Jae-myung, South Korea will also work to complete the second phase of legislation for the Basic Act on Digital Assets. The focus of this legislation will be on regulatory details for stablecoins and information disclosure requirements for cryptocurrency exchanges, aiming to provide clearer and more comprehensive legal foundations for South Korea's cryptocurrency market. The pro-cryptocurrency policy of the Lee Jae-myung government, if effectively implemented, is expected to have a profound impact on the cryptocurrency market in South Korea and even globally: Increased market liquidity and maturity: The launch of spot ETFs and the potential entry of pension funds into the market will bring considerable incremental capital to the market, enhance the liquidity and depth of the market, and attract more traditional financial institutions to participate. Improved regulatory clarity: The completion of the second phase of the Basic Law on Digital Assets is expected to provide clearer legal guidance in key areas such as stablecoins and exchange operations, reduce market uncertainty, and contribute to the long-term healthy development of the industry. The rise of the won stablecoin: If the won stablecoin can be successfully launched and recognized by the market, it will not only help enhance the influence of the won in the digital economy era, but also open up a new track for South Korea in the global digital currency competition. Industrial innovation and increased employment opportunities: The government's support for the cryptocurrency industry is expected to encourage more blockchain technology R&D and application innovation, thereby driving the development of related industrial chains and creating more jobs. Challenges and Expectations Despite the exciting cryptocurrency policy blueprint proposed by Lee Jae-myung, there may be some challenges in its implementation. Former South Korean President Yoon Suk-yeol had also promised to promote the legalization and deregulation of cryptocurrencies before taking office, but due to the strict oversight of regulatory bodies such as the Financial Services Commission (FSC), actual policy progress has been relatively slow. However, in recent years, the attitude of the South Korean Financial Services Commission (FSC) has shown a trend of softening. This may pave the way for the Lee Jae-myung government's promotion of its cryptocurrency-friendly policies, reducing resistance from the regulatory side. South Korea, as one of the world's major cryptocurrency markets, is known for its extremely high user participation and active altcoin trading. According to statistics from the Financial Services Commission (FSC) of South Korea, by the end of last year, there were approximately 9.7 million cryptocurrency users in South Korea, accounting for about 20% of the national population. This large user base not only represents a huge potential for driving the development of the cryptocurrency industry but also raises higher investor protection requirements from regulatory authorities. The enthusiasm for the cryptocurrency market in South Korea ranks among the top globally. A unique phenomenon is the "kimchi premium," where the price of the same cryptocurrency (such as Bitcoin) on local exchanges in South Korea often exceeds the global market average price, with the premium sometimes reaching 3% to 5% or even higher. This phenomenon reflects the strong buying demand in the local market and certain capital control factors. In addition, South Korean investors have shown an unusual preference for highly volatile altcoins. According to statistics, about 80% of the trading volume on Upbit, the largest cryptocurrency exchange in South Korea, comes from tokens other than Bitcoin and Ethereum, making the South Korean cryptocurrency market, in the eyes of some observers, a "speculative playground." However, while actively embracing cryptocurrencies, how to effectively prevent financial risks, protect the interests of investors, and combat illegal activities (such as money laundering and fraud) will still be an important issue for the Lee Jae-myung government. The speculative atmosphere in the South Korean market is strong, and strong regulation and investor education are needed to guide the rational development of the market. All in all, with the election of Lee Jae-myung, who supports cryptocurrency, as the new president of South Korea, this "big country of coin speculation" that occupies an important place in the global crypto map is standing on the threshold of opening a new era of cryptocurrency. It will be interesting to see how South Korea's cryptocurrency policy will evolve in the coming years, how its market landscape will change, and how it will affect global cryptocurrency trends. #South Korea Cryptocurrency Policy