All three major South Korean presidential contenders have expressed support for Bitcoin exchange-traded funds (ETFs) and more extensive institutional investment in digital assets, which is a huge boost to the cryptocurrency industry.
Given that South Korea is establishing itself as a major worldwide center for technology and finance, the endorsement indicates that there is growing political agreement to incorporate cryptocurrency into the nation’s financial system.
At present, the three main candidates include The Democratic Party of Korea’s presidential candidate Rep. Lee Jae-myung, the People Power Party’s Kim Moon-soo, and Lee Jun-seok of the New Reform Party.
CryptoQuant CEO Calls Candidates’ Bitcoin ETF Support a Watershed Moment for Institutional Adoption
South Korean Presidential candidates Lee Jae-myung, Kim Moon-soo, and Lee Jun-seok have shared a position that Bitcoin ETFs are a watershed for institutional acceptance and regulatory certainty, according to Ki Young Ju, CEO of CryptoQuant.
Because of this alignment, laws that support cryptocurrencies may be introduced more quickly, opening the door for more regulated investment vehicles and increased market participation.
South Korea has long been a major force in the global cryptocurrency scene as one of the busiest retail trading markets in the world. However, because of regulatory uncertainties, institutional engagement has been delayed.
Also Read: South Korea’s Ruling Party Proposes Digital Asset Reform to Boost Crypto Growth
How is This Development Beneficial?
South Korea’s crypto environment is likey to flourish with the appointment of a pro-crypto President. Just as in the USA, a government that is supportive of the crypto sector will result in a surge in local crypto user base and adoption
The support from South Korean politicians also represents a change in public opinion, as younger, tech-savvy voters come to see cryptocurrencies as real assets.
The leadership of South Korea may now be trying to keep up with global trends while promoting innovation and financial inclusion domestically, as Bitcoin ETFs are becoming more and more popular worldwide, particularly in the US and Hong Kong.
South Korea Emerges as Global Crypto Hub Driven by Institutions, Market Activity, and Regulatory Reform
South Korea is quickly becoming a major global center for cryptocurrencies because to institutional adoption, robust market involvement, and progressive regulatory reforms.
The Virtual Asset User Protection Act, which was passed in 2024 and required strict compliance requirements for digital asset service providers, lay the groundwork for a safe and open crypto market.
In a major change to policy, the Financial Services Commission (FSC) declared that it would remove the prohibition on institutional cryptocurrency trading by 2025, allowing businesses, nonprofit organizations, and academic institutions to deal in digital assets.
The government’s larger plan to encourage innovation and incorporate blockchain technology into the banking industry is in line with this action.
As part of the FSC’s staged approach, 3,500 businesses and professional investors are now able to create real-name accounts on cryptocurrency exchanges, improving compliance and transparency.
In an effort to stop illegal activity and maintain financial stability, South Korea also intends to regulate cross-border virtual asset transactions by requiring companies to register and disclose their operations to the Bank of Korea.
South Korea is positioned as a major player in the global digital asset market because to its dedication to creating a regulated and inclusive crypto ecosystem, as well as its tech-savvy populace and robust digital infrastructure.
Also Read: Central Bank Of South Korea Commits To Shaping Stablecoin Regulations To Safeguard Monetary Policy