- Lee has recommended wider issuance of a stablecoin backed by the South Korean won to modernize the financial system of South Korea and halt capital outflows.
- Kim also backs legalizing spot crypto ETFs and supports Lee’s proposal, indicating rare bipartisan alignment.
South Korea will now surely have a crypto-friendly regulation independent of the factor who wins the presidential election, as both presidential candidates have run on pro-crypto platforms and promised to ease regulations as well as expand crypto access.
The South Korean election will take place on June 3 to elect a new president in an instant runoff election to replace Yoon Suk-yeol, the last president who was removed from office after attempting to declare martial law in December 2024.
The two presidential candidates in the election are Lee Jae-myung and Kim Moon-soo, and as of the current scenario, Lee from the Democratic Party is leading the polls. He has offered legalizing spot crypto exchange-traded funds and also wants to permit the $884 billion national pension fund of the nation to invest in cryptocurrency.
Lee has also recommended wider issuance of a stablecoin backed by the South Korean won to modernize the financial system of South Korea and halt capital outflows. He also aims to simplify strict banking rules that require crypto exchanges to collaborate with licensed banks to provide fiat services.
The Rare Bipartisan Alignment
Kim also backs legalizing spot crypto ETFs and supports Lee’s proposal, indicating rare bipartisan alignment. He has also promised to ease regulations and widen crypto adoption.
The chief executive officer of a Seoul-based venture capital company company Hashed Ventures, revealed that with all the prominent candidates backing pro-crypto policies, the crypto investors of the country witness a clear win despite the election outcome.
On May 28, a Gallup Korea poll revealed that 49% of the respondents are in favor of Lee; however, 36% favor the other candidate. The need for a clear regulation for crypto emerges from the high retail crypto participation in the country.
In July 2024, harsh regulations were imposed, and strict requirements were needed, like potential life sentences for criminal violations. On May 20, the Financial Services Commission of the country decided to remove the new laws.
Also, the entity introduces new rules for nonprofit crypto sales and harsher listing standards for exchanges.
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