Cryptocurrency has become a decisive problem in the presidential election of the South Korea Snap, candidates in the running for the support of an increasing base of digital asset investors through generations.
The three avant-cowers have deployed cryptographic friendly proposals. These include the legalization of Bitcoin (BTC) funds (BTC) on funds (ETF) and the relaxation of banking rules which currently restrict Fiat-to Crypto trade to only five platforms.
The voting of June 3 should go to two years earlier, launched by the dismissal of former president Yoon Suk-Yeol after his controversial declaration of martial law at the end of 2024. Although reversed quickly by the legislators, the absence of steep power led to a political crisis and his possible withdrawal of his functions.
The Yoon campaign in 2022 is based strongly on the promises of reforming cryptographic regulations – largely intended for young voters. This time, the political emphasis on digital assets was only intensifying, because older generations are starting to pay significant wealth in digital assets.
Clash presidential election debate on stablescoins
This election has three main candidates, and all promised to advance the economy of local cryptography.
Lee Jae-Myung of the opposing Democratic Party lost against Yoon in the last elections and returns with a second cryptographic friendly campaign.
Kim Moon-Soo takes place under the current power party, the People Power Party (PPP). Former President Yoon moved away from PPP before the elections, leaving Kim to define a new direction for the fractured conservative base.
Lee Jun-Seok was once the youngest leader of the PPP. He now headed his own newly formed reform party, a minor party which he founded in January 2024 after having separated from the power block.
“The political sphere has actively adopted [cryptocurrencies] As a key campaign program, “said Blockchain Research Center, Park Sung-Jun, chief of the Research Center at Dongguk University.
“Pushed by the transition to a digital economy, the thrust of the transparency of political financing, the spread of political participation technologies based on blockchain and increasing requests for the protection of investors, [crypto] has become an important economic, social and political problem in South Korea. »»
Lee Jae-Myung and Kim have both committed to facilitating strict banking rules that require crypto exchanges to associate with approved banks to offer Fiat services-a system that has created a quasi-monopoly of only five approved platforms. The structure in place excludes the participation of companies, because it obliges users to open accounts in partner banks using their legal identity.
Lee also proposed to launch a stablecoin fixed to reducing the dependence on tokens issued abroad.
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Lee Jun-Seok pushed back, noting that South Korea once had a stable algorithmic Won Handle, Terrakrw (KRT), part of the terra ecosystem which has undergone a collapse of several billion dollars.
“Lee Jae-Myung proposes to launch another stablecoin without presenting guarantees. What assets will support it? How will the risks of the market be managed? How are we going to avoid repeating past failures?
The two candidates clashed again on stablecoins during a live debate, where Lee Jae-Myung pleaded for the safety of centralized stablecoins and supported by Fiat.
Lee Jae-Myung was Yoon’s opponent in the 2022 elections when he also defended friendly policies. However, it was less aggressive than Yoon, who made several pro-Crypto promises. Some of them, such as lifting prohibitions on safety game games (P2E) and initial parts offers, have never been implemented.
Lee Jun-Seok would have called the “second semiconductor industry” games in South Korea, which represented more fifth of the country’s total exports in 2024. He is committed to target 10% of the global game market thanks to regulatory support for taxation, exports and development of talents. He added that the regulations that rejected P2E games based on blockchain accelerate the exodus of creative industries.
P2E Games remain prohibited under local regulations, but interest has recently increased among investors after the launch of a new title in Nexon, one of the greatest South Korean game developers, as well as a new cryptocurrency linked to its economy at stake.
The crypto promises to test the basics of old and new voters
South Korea had 9.7 million knowledge of your investors in cryptography verified by the customer by the end of 2024, an increase of 25% compared to the first half, according to the Financial Intelligence Unit (FIU). Investors in the thirties have experienced the largest growth, up 29%, followed by those in the forties (27%), while investors by more than 50 increased by 25%.
FIU’s conclusions show that older investors have greater assets. At the end of the year, 221,000 investors owned at least 100 million won (around $ 73,000) in crypto. Among these, 172,500 – or 78% – exceeded 40.
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In February, the head of the Financial Industry Association urged regulators to approve FNB Bitcoin and Ether, citing the increase in demand among older investors. He argued that the ETFs offer a safer exhibition than direct investment.
The approval of the Bitcoin ETF was a key campaign commitment to Lee Jae-Myung and Kim. This decision follows a growing global dynamic after the United States, the world’s largest market and a South Korean trading partner, gave the green light to locate FNB Bitcoin in early 2024.
“Cryptocurrencies play a certain role in our society, but they are ultimately one of the world trends. While the United States has taken the lead, we ended up following its traces. It is a little disappointing-we could have taken the lead ourselves,” said Cho Jaewoo, deputy professor of social sciences at the University of Hansung, Cointegraph.
However, the country’s capital market law is an obstacle that does not recognize crypto as eligible assets underlying ETF. The Financial Services Commission (FSC) also examines the legal paths to allow Bitcoin ETF within the framework of its dedicated cryptography committee.
Lee to come in the electoral survey of presidential elections
Yoon’s defaulting coup has accelerated the presidential election and brought a renewed emergency to unresolved problems in the local cryptography industry.
“During the 2022 presidential election, cryptocurrency was considered speculative and unworthy of confidence. But in the elections in 2025, it had become a key political problem, the main candidates put pressure for institutionalization and financial production in response to the realities of the investments facing young people, “said Parkchain Research Center.
South Korea is one of the largest cryptographic markets in the world. In the first quarter of 2024, the Korean was classified as the most negotiated fiduciary currency against the crypto, mainly motivated by retail investors. The institutional actors remain on the sidelines, pending their turn while the FSC is preparing to launch the pilot trading against professional investors.
Crypto policies were once considered campaign strategies to influence young voters, but this year, they are considered an economic and social problem that has an impact on several generations. In this election, older generations enter the digital sphere, accelerating calls for regulated investment vehicles, such as ETF.
“Things have changed a lot. There were even questions and answers on virtual assets during presidential debates, and related discussions seem to be much more active. In the past, people have looked at it with skepticism, but now the public is the more neutral approach and made its own judgments,” said Cho.
Lee Jae-Myung and Kim are the two main candidates, according to local media surveys, Lee leading Kim at 44.9% at 35.9%, according to a survey of May 23 to 25. Lee Jun-Seok is far behind 9.6%, although he won almost 3% of the preliminary survey carried out a week earlier.
The 21st presidential election is expected to take place on June 3.
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