The issue of cryptocurrency has become a major concern in South Korea’s presidential elections, as candidates vie for the support of a large number digital assets investors from all generations.
The three leading candidates have all made crypto-friendly propositions. This includes the legalization spot Bitcoin.BTCExchange-traded Funds (ETFs), and the relaxation of bank rules which currently limit fiat to crypto trading on only five platforms.
It is expected that the vote on June 3, 2015, will be two years ahead of schedule. This was prompted by Yoon Suk-yeol’s controversial impeachment. declaration of martial law The year 2024 will be the last. The sudden power grab was quickly reversed by legislators, but it led to political turmoil and eventually his removal.
Yoon’s 2022 campaign leaned heavily on promises to reform crypto regulations — largely aimed at younger voters. The political attention on digital assets is intensifying this time as older generations invest significant amounts of money in digital assets.
Presidential election debate clash on stablecoins
All three candidates in this election have pledged to further the crypto economy locally.
Lee Jae Myung, the Democratic Party candidate who lost the election to Yoon last time around, is back with another crypto-friendly campaign.
Kim Moonsoo will run under the People Power Party. Kim Moon-soo is running under the current ruling party, the People Power Party (PPP).
Lee Jun Seok used to be the youngest ever leader of the PPP. He now leads his newly formed Reform Party. A minor party that he founded after splitting from the ruling bloc in January of 2024.
“The political sphere has actively embraced [cryptocurrencies] as a key campaign agenda,” Park Sungjun, director of the Blockchain Research Center Dongguk University told Cointelegraph.
“Driven by the transition to a digital economy, the push for transparency in political funding, the spread of blockchain-based political participation technologies and growing demands for investor protection, [crypto] has emerged as a significant economic, social and political issue in South Korea.”
Lee Jae-myung and Kim have both pledged to ease strict banking rules that require crypto exchanges to partner with licensed banks to offer fiat services — a system that has created a near-monopoly of just five approved platforms. Structure in place does not allow corporate participation as users are required to open bank accounts using their legal identifies.
Lee also suggested launching an a stablecoin pegged to the won Reducing reliance upon tokens issued overseas.
Related: South Korean crypto emerges from failed coup into crackdown season
Lee Jun-seok pushed backNoting that South Korea had once had an algorithmic stablecoin pegged to won, TerraKRW(KRT), which was part of the Terra eco-system that suffered a multibillion-dollar collapse.
“Lee Jae-myung proposes launching another stablecoin without presenting any safeguards. What assets will back it? How will market risks be handled? How will we avoid repeating past failures? There are no answers,” Lee Jun-seok posted a Facebook message. postHe criticizes his opponent for turning the stablecoins to a “slogan.”
The two candidates again clashed over stablecoins, this time during a debate. Lee Jae myung advocated for the security of fiat-backed centralized stablecoins.
Lee Jae myung was Yoon’s opponent at the election in 2022 when he championed crypto-friendly policies. He was, however, less assertive than Yoon who had made several crypto-friendly pledges. Some of these, including lifting the bans against play-to earn (P2E), initial coin offerings and P2E games, have never been implemented.
Lee Jun-seok reportedly South Korea is known as the “Gamer’s Republic” “second semiconductor industry,” You can find out more about it here. made up In 2024, more than one fifth of total country exports are expected to come from gaming. He committed to a 10% share of the gaming industry through taxation and export regulation, talent development and regulatory support. He said regulations that exclude P2E blockchain games are accelerating the exit of creative industries.
Under the new legislation, P2E is banned. local regulationsInvestors have recently shown a surge in interest following the recent launch of an new title by NexonThe new currency is linked to its game economy.
Crypto-promises test the old and new voter base
South Korea will have 9.7 million crypto investors who are verified as Know Your Customer by 2024. That’s a 25% rise from the beginning of the year. according Financial Intelligence Unit. According to the Financial Intelligence Unit (FIU), investors aged 30 and under saw a 29% increase, followed by 40-year-olds with a 27% rise, while over-50s experienced a 25% growth.
FIU findings reveal that older investors hold more cryptocurrency. In the last 12 months, at least 221,000 crypto investors owned 100 million wons (roughly $73,000). Of those, 172,500 — or 78% — were over 40.
Related: XRP and Solana race toward the next crypto ETF approval
The head of the Financial Industry Association (FIA) spoke in February. urged regulators to approve Bitcoin and Ether ETFsHe cited the growing demand from older investors. He claimed that ETFs provide a more secure investment option than direct investing.
Both Lee Jae Myung and Kim have made the approval of Bitcoin ETFs a major campaign promise. It follows a global trend that has grown after the US, which is the largest market in the world and also a major trading partner of South Korea, approved the launch of Bitcoin ETFs for early 2024.
“Cryptocurrencies play a certain role in our society, but they are ultimately one of the global trends. As the US took the lead, we’ve ended up following in its footsteps. It’s a bit disappointing — we could have taken the lead ourselves,” Cho Jaewoo, Assistant Professor of Social Science at Hansung University told Cointelegraph.
Capital Markets Act does not allow crypto to be used as an asset underlying ETFs. Financial Services Commission’s (FSC) dedicated crypto committee is looking at legal ways to permit Bitcoin ETFs.
Lee wins in survey of presidential voters
Yoon’s failed coup has accelerated the presidential elections and given renewed urgency to issues unresolved in the crypto industry.
“In the 2022 presidential election, cryptocurrency was viewed as speculative and untrustworthy. But by the 2025 election, it had emerged as a key policy issue, with major candidates pushing for institutionalization and financial productization in response to the investment realities faced by young people,” Park of Blockchain Research Center stated.
South Korea has the biggest crypto market in the world. In the first quarter of 2024, Korean wons ranked the highest in the world. most-traded fiat currency against cryptoThey are dominated by retail investors. The FSC is preparing to start a pilot program for professional traders, but institutional players are still waiting.
Crypto policies, once considered a way to influence younger voters, are now seen by many as an economic issue that has ramifications for multiple generations. This election sees older generations entering the digital world, which is accelerating the call for ETFs and other regulated investments.
“Things have changed a lot. There were even questions and answers about virtual assets during the presidential debates, and related discussions seem to be much more active. In the past, people looked at it with skepticism, but now it feels like the public is approaching it more neutrally and making their own judgments,” Cho said
Local media reports have identified Lee Jae myung as the leading candidate, followed by Kim. Lee leads Kim with 44.9% compared to 35.9% according to an online survey from 23 to 25 May. Lee Junseok comes in far behind with 9.6%. However, he has gained almost 3 percent from the initial survey conducted one week earlier.
The 21st election for president is set to be held on June 3
Magazine: Crypto scam hub expose stunt goes viral, Kakao detects 70K scam apps: Asia Express
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Source: cointelegraph.com
