Cryptocurrency regulation is now at the forefront of the electoral campaign in South Korea.

Presidential hopefuls in South Korea are promising to update regulations to allow for the introduction of spot cryptocurrency exchange-traded funds (ETFs). Lee Myung from the Democratic Party, who is a strong contender in the elections, has committed to establishing a stablecoin that would be backed by the Korean Won. As South Korea prepares for its highly awaited election on June 3rd to choose a successor to Yoon Suk Yeol, these developments are taking center stage. Interestingly, cryptocurrency has become a central focus in the current presidential campaign, with candidates aiming to attract the 15 million crypto investors, representing 30% of the population. Local media reports reveal that Lee Jae-myung from the Democratic Party and Kim Moon-soo from the People Power Party have both committed to creating a regulatory framework to enable the introduction of spot crypto Exchange Traded Funds (ETFs), as highlighted in our latest news update. At the same time, Ki Young Ju, the CEO of CryptoQuant, has suggested that all three leading candidates are favorable towards cryptocurrency. All three main presidential candidates in South Korea back Bitcoin ETFs and support investment from institutions. At present, Bitcoin ETFs and institutional investments are prohibited in South Korea. All of the volume originates from retail investors. At present, South Korean regulations do not allow for cryptocurrency exchange-traded funds (ETFs). The legislation also contains restricted proposals, such as allowing institutional access to foreign-listed ETFs. In our latest blog entry, we pointed out that the Bank of Korea (BoK) stated that Bitcoin does not fulfill the criteria set by its national standards or those of the International Monetary Fund (IMF). Additionally, BoK considers the asset’s volatility to be another factor preventing it from recognizing Bitcoin as a foreign reserve asset, as mentioned in our earlier news report. At the same time, Jung Soo-ho, the Managing Partner at Renaissance Law Firm, has expressed his disapproval of current regulations, describing them as excessively timid and devoid of a solid legal basis. Although these regulations aim to safeguard investors, they are effectively seen as unnecessary regulatory overregulation. Lee Jae-Myung suggests support for pro-cryptocurrency policies.