{"id":52824,"date":"2025-05-21T11:55:23","date_gmt":"2025-05-21T11:55:23","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-policies-may-dominate-south-koreas-2025-election-agenda-as-15m-investors-eye-reforms\/"},"modified":"2025-05-21T11:55:23","modified_gmt":"2025-05-21T11:55:23","slug":"crypto-policies-may-dominate-south-koreas-2025-election-agenda-as-15m-investors-eye-reforms","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-policies-may-dominate-south-koreas-2025-election-agenda-as-15m-investors-eye-reforms\/","title":{"rendered":"Crypto policies may dominate South Korea&#8217;s 2025 election agenda as 15M investors eye reforms"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-70-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-70-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-70-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-70-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>South Korea\u2019s election is scheduled for 3 June.<\/li>\n<li>Candidates propose legalising Bitcoin and crypto ETFs.<\/li>\n<li>Lee Jae-myung of the Democratic Party and Kim Moon-soo from the People Power Party are leading with pro-crypto proposals.<\/li>\n<\/ul>\n<p class=\"\" data-start=\"169\" data-end=\"641\">With over 15 million digital asset investors\u2014nearly a third of the country\u2019s population\u2014crypto has emerged as a decisive issue in the election.<\/p>\n<p class=\"\" data-start=\"169\" data-end=\"641\">Candidates are competing to win the confidence of this tech-savvy demographic by pledging to legalise crypto spot ETFs and introduce won-backed stablecoins, policy shifts that could radically reshape the nation\u2019s financial landscape.<\/p>\n<p class=\"\" data-start=\"643\" data-end=\"904\">Amid record capital outflows and demand for clearer regulation, both leading candidates have aligned their platforms with the rising crypto movement.<\/p>\n<p class=\"\" data-start=\"643\" data-end=\"904\">But as policy discussions heat up, sceptics question whether these promises will move beyond political theatre.<\/p>\n<h2 class=\"\" data-start=\"906\" data-end=\"960\">Crypto ETFs and pension fund access dominate the debate<\/h2>\n<p class=\"\" data-start=\"962\" data-end=\"1300\">Lee Jae-myung of the Democratic Party and Kim Moon-soo from the People Power Party are leading with pro-crypto proposals.<\/p>\n<p class=\"\" data-start=\"962\" data-end=\"1300\">Both have committed to legalising spot crypto exchange-traded funds (ETFs), currently banned in South Korea.<\/p>\n<p class=\"\" data-start=\"962\" data-end=\"1300\">These instruments would allow indirect investment in assets like Bitcoin through regulated stock exchanges.<\/p>\n<p class=\"\" data-start=\"1302\" data-end=\"1642\">Presently, crypto investment in South Korea is almost entirely retail-driven.<\/p>\n<p class=\"\" data-start=\"1302\" data-end=\"1642\">Institutional investment is restricted, and domestic funds such as the National Pension Service cannot legally participate.<\/p>\n<p class=\"\" data-start=\"1302\" data-end=\"1642\">That could change under Lee\u2019s proposal to open digital asset investment to large institutions, provided price stability conditions are met.<\/p>\n<p class=\"\" data-start=\"1644\" data-end=\"1994\">This marks a significant shift in government thinking. Until now, South Korean authorities have maintained a ban on corporate crypto exposure.<\/p>\n<p class=\"\" data-start=\"1644\" data-end=\"1994\">However, recent commentary by leaders in the fintech industry, including the Korea Fintech Industry Association, suggests that a regulated ETF market could become a bridge between crypto and capital markets.<\/p>\n<h2 class=\"\" data-start=\"1996\" data-end=\"2053\">Lee pushes won-backed stablecoin and digital asset law<\/h2>\n<p class=\"\" data-start=\"2055\" data-end=\"2320\">Lee Jae-myung is also pushing a stablecoin proposal aimed at reducing reliance on US-pegged stablecoins like USDT and USDC.<\/p>\n<p class=\"\" data-start=\"2055\" data-end=\"2320\">The plan would introduce a won-backed alternative under a proposed Digital Asset Basic Act expected to be introduced in parliament this week.<\/p>\n<p class=\"\" data-start=\"2322\" data-end=\"2611\">The bill would define the legal status of digital assets, their issuance and circulation, and set clear guidelines for stablecoin projects.<\/p>\n<p class=\"\" data-start=\"2322\" data-end=\"2611\">Under the draft framework, issuers would be required to register with the Financial Services Commission and hold reserves of at least 50 billion won.<\/p>\n<p class=\"\" data-start=\"2613\" data-end=\"2899\">Recent figures add urgency to the debate. Between January and March 2025, Korean crypto exchanges recorded \u20a956.8 trillion ($40.8 billion) in outflows, with nearly half linked to dollar-based stablecoins.<\/p>\n<p class=\"\" data-start=\"2613\" data-end=\"2899\">The outflows have fuelled concerns about capital flight and foreign currency risk.<\/p>\n<p class=\"\" data-start=\"2901\" data-end=\"3200\">Lee\u2019s policy seeks to build a domestic alternative, but critics argue that privately issued stablecoins pose macroeconomic risks by enabling money creation outside central bank control.<\/p>\n<p class=\"\" data-start=\"2901\" data-end=\"3200\">Analysts at the Korea Capital Market Institute warn that these instruments may effectively serve as shadow banks.<\/p>\n<h2 class=\"\" data-start=\"3202\" data-end=\"3254\">Regulatory crackdown targets unlicensed exchanges<\/h2>\n<p class=\"\" data-start=\"3256\" data-end=\"3581\">At the same time, financial regulators are stepping up scrutiny.<\/p>\n<p class=\"\" data-start=\"3256\" data-end=\"3581\">The Financial Supervisory Service reported that 52.5% of suspicious crypto trading flagged between July and December 2023 involved investors in their 20s and 30s.<\/p>\n<p class=\"\" data-start=\"3256\" data-end=\"3581\">This demographic forms the core of the voter base targeted by crypto-friendly politicians.<\/p>\n<p class=\"\" data-start=\"3583\" data-end=\"3867\">Regulators have also invoked the Act on the Protection of Virtual Asset Users to propose criminal penalties for unfair trading practices.<\/p>\n<p class=\"\" data-start=\"3583\" data-end=\"3867\">Separately, South Korea recently compelled Google to block 17 unregistered foreign exchanges, reinforcing its tough stance on investor protection.<\/p>\n<p class=\"\" data-start=\"3869\" data-end=\"4098\">Along with the Digital Asset Basic Act, the government plans to release phase two of its crypto regulatory framework in the second half of 2025, expanding oversight and establishing a foundation for compliant digital finance.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/crypto-policies-may-dominate-south-koreas-2025-election-agenda-as-15m-investors-eye-reforms\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) South Korea\u2019s election is scheduled for 3 June. Candidates propose legalising Bitcoin and crypto ETFs. Lee Jae-myung of the Democratic Party and Kim Moon-soo from the People Power Party are leading with pro-crypto proposals. With over 15 million digital asset investors\u2014nearly [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":52825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/52824"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=52824"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/52824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/52825"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=52824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=52824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=52824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}