South Korean Crypto Sector Secures a Victory Regardless of Election Results

This week’s presidential election represents a crucial advancement for the South Korean crypto asset sector, as both contenders have committed to enhancing crypto regulations and broadening access within the nation.

As noted in a Bloomberg article released on 2 June 2025, around 18 million individuals are actively involved in crypto activities across South Korea. Additionally, there have been moments when the trading volumes on South Korea’s domestic crypto exchanges have surpassed those of the KOSPI and KOSDAQ stock indices.

Information provided by the Bank of Korea indicates that South Koreans possessed crypto assets valued at 104 trillion won ($74.5 billion) during the final quarter of 2024.

NEWS: South Korea’s presidential contenders pledge to legalize spot crypto ETFs, relax regulations, and introduce a won-backed stablecoin. pic.twitter.com/jAfVYp4Gxm

— CoinGecko (@coingecko) June 2, 2025

The rising significance of this asset class has encouraged both candidates, Lee Jae-myung and Kim Moon-soo, to embrace pro-crypto policies in their campaigns.

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Presidential Candidates Lee and Kim Unite on Legalizing Spot Crypto ETFs

Lee has pushed for the legalization of spot crypto exchange-traded funds (ETFs) and hopes to allocate the nation’s $884 billion national pension fund towards cryptocurrencies.

In addition, he seeks to update South Korea’s financial infrastructure by issuing stablecoins that are supported by the South Korean won. During a policy forum in May, he remarked, “It is essential to create a won-backed stablecoin trading market to safeguard our national wealth from exiting the country.”

Furthermore, Lee has advocated for relaxing certain banking regulations that mandated crypto exchanges to collaborate with licensed banks to provide fiat services.

Nevertheless, several of Lee’s proposed reforms have encountered resistance in the area. The Bank of Korea Governor Rhee Chang-yong has warned against allowing stablecoins to be issued by entities outside of banking.

He clarified that this could compromise the effectiveness of the country’s monetary policies. He has suggested that only the central bank should have the authority to issue won-backed stablecoins.

Conversely, Kim also backs the legalization of spot crypto and has expressed his price floor for Lee on this issue in a rare moment of bipartisan cooperation. Additionally, like Lee, Kim aims to relax regulations and enhance crypto adoption.

A survey conducted on 28 May 2025 by Gallup Korea, a South Korean firm specializing in public opinion and crypto market research, indicated that 49% of participants preferred Lee, while 39% chose Kim as their presidential candidate.

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Surge in South Korean Crypto Participation Prompted Regulatory Changes

The rise in retail crypto engagement in South Korea, coupled with its previous experiences with crypto fraud incidents, expedited the introduction of new regulations aimed at ensuring greater transparency, safety, and trust within the cryptocurrency ecosystem.

Strict regulations (Virtual Asset User Security Act) came into effect in July 2024, enforcing stringent requirements on crypto exchanges that included severe penalties for violations.

On 20 May 2025, the South Korean Financial Services Commission instituted new rules governing non-profit crypto transactions and intensified the listing requirements for exchanges.

Moreover, the South Korean Democratic Party initiated a Digital Asset Committee focused on formulating crypto policies and fostering industry development.

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The article South Korean Crypto Industry Hedges A Win Despite Election Outcome was originally published on 99Bitcoins.