{"id":130007,"date":"2025-05-26T15:16:01","date_gmt":"2025-05-26T15:16:01","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=130007"},"modified":"2025-05-26T15:16:01","modified_gmt":"2025-05-26T15:16:01","slug":"veteran-capital-in-crypto-is-shaping-south-koreas-elections","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=130007","title":{"rendered":"Veteran capital in crypto is shaping South Korea\u2019s elections"},"content":{"rendered":"

Source: Cointelegraph.com NewsCryptocurrency has emerged as a defining issue in South Korea\u2019s snap presidential election, with candidates vying for support from a growing base of digital asset investors across generations.
\nAll three front-runners have rolled out crypto-friendly proposals. These include the legalization of spot Bitcoin (BTC) exchange-traded funds (ETFs) and the easing of banking rules that currently restrict fiat-to-crypto trading to just five platforms.
\nThe June 3 vote is slated to come around two years early, triggered by the impeachment of former president Yoon Suk-yeol after his controversial declaration of martial law in late 2024. Though quickly overturned by lawmakers, the abrupt power grab led to a political crisis and his eventual removal from office.
\nYoon\u2019s 2022 campaign leaned heavily on promises to reform crypto regulations \u2014 largely aimed at younger voters. This time, the political focus on digital assets has only intensified, as older generations begin to pour significant wealth into digital assets.
\nThree leading presidential candidates have promised pro-crypto policies.Presidential election debate clash on stablecoins
\nThis election has three leading candidates, and all of them have promised to advance the local crypto economy.
\nLee Jae-myung of the opposing Democratic Party lost to Yoon in the last election and returns with a second crypto-friendly campaign.
\nKim Moon-soo is running under the current ruling party, the People Power Party (PPP). Former president Yoon has distanced himself from the PPP ahead of the election, leaving Kim to define a new direction for the fractured conservative base.
\nLee Jun-seok was once the youngest-ever leader of the PPP. He is now leading his own newly formed Reform Party, a minor party he founded in January 2024 after splitting with the ruling bloc.
\n\u201cThe political sphere has actively embraced [cryptocurrencies] as a key campaign agenda,\u201d Park Sung-jun, head of the Blockchain Research Center at Dongguk University, told Cointelegraph.
\n\u201cDriven 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.\u201d
\nLee 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 \u2014 a system that has created a near-monopoly of just five approved platforms. The structure in place excludes corporate participation, as it requires users to open accounts at partner banks using their legal identities.
\nLee has also proposed launching a stablecoin pegged to the won to reduce reliance on tokens issued abroad.
\nRelated: South Korean crypto emerges from failed coup into crackdown season
\nLee Jun-seok pushed back, noting that South Korea once had a won-pegged algorithmic stablecoin, TerraKRW (KRT), part of the Terra ecosystem that suffered a multibillion-dollar collapse.
\n\u201cLee 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,\u201d Lee Jun-seok said in a Facebook post, criticizing his opponent for turning stablecoins into a \u201cslogan.\u201d
\nThe two candidates clashed again on stablecoins during a live debate, where Lee Jae-myung argued for the safety of centralized and fiat-backed stablecoins.
\nPresidential candidates quiz each other on the difference between USDT and USDC. Source: National Election Broadcasting Debate CommissionLee Jae-myung was Yoon\u2019s opponent in the 2022 election when he also championed crypto-friendly policies. However, he was less aggressive than Yoon, who made several pro-crypto pledges. Some of them, like lifting bans on play-to-earn (P2E) gaming and initial coin offerings, were never implemented.
\nLee Jun-seok reportedly called gaming South Korea\u2019s \u201csecond semiconductor industry,\u201d which made up more than a fifth of the country\u2019s total exports in 2024. He pledged to target 10% of the global gaming market through regulatory support in taxation, exports and talent development. He added that regulations that dismiss blockchain-based P2E games accelerate the exodus of creative industries.
\nP2E games remain banned under local regulations, but interest has recently surged among investors following the launch of a new title by Nexon, one of South Korea\u2019s biggest game developers, along with a new cryptocurrency tied to its in-game economy.
\nNexon shares have soared since the company launched its own crypto. Source: Tokyo Stock Exchange via Google FinanceCrypto promises test old and new voter bases
\nSouth Korea had 9.7 million Know Your Customer-verified crypto investors by the end of 2024, a 25% increase from the first half of the year, according to the Financial Intelligence Unit (FIU). Investors in their 30s saw the biggest growth, up 29%, followed by those in their 40s (27%), while investors over 50 increased by 25%.
\nThe FIU\u2019s findings show that older investors have larger holdings. By year-end, 221,000 investors held at least 100 million won (about $73,000) in crypto. Of those, 172,500 \u2014 or 78% \u2014 were over 40.
\nRelated: XRP and Solana race toward the next crypto ETF approval
\nIn February, the head of the financial industry association urged regulators to approve Bitcoin and Ether ETFs, citing rising demand among older investors. He argued that ETFs offer safer exposure than direct investment.
\nThe approval of Bitcoin ETFs has been a key campaign pledge for both Lee Jae-myung and Kim. The move follows growing global momentum after the US, the world\u2019s largest market and a key South Korean trading partner, gave the green light to spot Bitcoin ETFs in early 2024.
\nPresidential hopefuls ignite institutional interest in South Korea\u2019s retail-driven crypto market. Source: Ki Young Ju\u201cCryptocurrencies play a certain role in our society, but they are ultimately one of the global trends. As the US took the lead, we\u2019ve ended up following in its footsteps. It\u2019s a bit disappointing \u2014 we could have taken the lead ourselves,\u201d Cho Jaewoo, assistant professor of social science at Hansung University, told Cointelegraph.
\nHowever, the nation\u2019s Capital Markets Act is a barrier that does not recognize crypto as eligible assets underlying ETFs. The Financial Services Commission (FSC) is also reviewing legal pathways to allow Bitcoin ETFs under its dedicated crypto committee.
\nLee ahead in presidential election voter survey
\nYoon\u2019s failed coup accelerated the presidential election and brought renewed urgency to unresolved issues in the local crypto industry.
\n\u201cIn 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,\u201d Park from Blockchain Research Center said.
\nSouth Korea is one of the world\u2019s largest crypto markets. In Q1 2024, the Korean won ranked as the most-traded fiat currency against crypto, driven largely by retail investors. Institutional players remain on the sidelines, awaiting their turn as the FSC prepares to launch pilot trading for professional investors.
\nFSC\u2019s planned schedule for a phased introduction of institutional crypto investment in 2025.Crypto policies were once seen as campaign strategies to sway younger voters, but this year, they\u2019re seen as an economic and social issue that impacts multiple generations. In this election, older generations are entering the digital sphere, accelerating calls for regulated investment vehicles, such as ETFs.
\n\u201cThings 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,\u201d Cho said.
\nLee Jae-myung leads the latest voter survey by local media and Next Research. Source: Maeil Business NewspaperLee Jae-myung and Kim are the two leading candidates, according to local media surveys, with Lee leading Kim at 44.9% to 35.9%, according to a survey conducted from May 23 to 25. Lee Jun-seok is far behind at 9.6%, though he gained almost 3% from the preliminary survey conducted a week prior.\u00a0
\nThe 21st presidential election is scheduled to take place on June 3.\u00a0
\nMagazine: Crypto scam hub expose stunt goes viral, Kakao detects 70K scam apps: Asia ExpressRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsCryptocurrency has emerged as a defining issue in South Korea\u2019s snap presidential election, with candidates vying for support from a growing base of digital asset investors across generations.… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130007"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=130007"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130007\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=130007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=130007"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=130007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}