On Wednesday, Lee Jae-myung was sworn in as South Korea’s president after securing 49.42% of the vote. The pro-cryptocurrency leader made several commitments, emphasizing economic renewal and recovery following recent crises.
Both leading candidates in the presidential race, Lee Jae-myung of the Democratic Party and Kim Moon-soo of the People’s Power Party, advocated for pro-crypto regulations, suggesting a positive outlook for the cryptocurrency ecosystem regardless of the election outcome.
South Korea boasts a vibrant crypto market, with more than 18 million residents actively engaged in digital asset trading.
According to a Bloomberg analysis, the trading volume on South Korean exchanges has occasionally surpassed that of the Kospi and Kosdaq stock exchanges.
Commitments to Crypto During the Campaign
During his campaign, President Lee Jae-myung made numerous pledges to support the cryptocurrency sector, including plans for the approval of spot cryptocurrency ETFs and a reduction in transaction fees.
At an event in North Chungcheong Province on May 6, he emphasized his commitment to creating “a safer environment for investment,” highlighting that such measures would assist young citizens in building their wealth and planning for their future.
Lee stated that his administration would work towards institutionalizing spot ETFs for cryptocurrencies, alongside establishing an integrated monitoring system to effectively oversee the crypto industry.
Moreover, he proposed the introduction of a won-backed stablecoin aimed at addressing the significant outflow of 56.8 trillion won (approximately $40.8 billion) in cryptocurrency. This stablecoin would help reduce reliance on foreign currencies like USDT and USDC.
Presidential candidate Lee Jae-myung proposes a won-backed stablecoin to stop $40.8B in crypto capital flight.#Korea #Stablecoin #LeeJaemyunghttps://t.co/qR1jwd7tXB
— Finance Newso.com (@Finance Newso) May 20, 2025
Strengthening Korea’s Digital Asset Regulatory Framework in 2025
With Lee Jae-myung’s administration, South Korea is set to embark on the second phase of its cryptocurrency regulatory framework.
A recent local report indicated that the Financial Services Commission (FSC) plans to draft new legislation in the latter half of this year. The nation’s initial digital asset regulatory framework came into force in July of the previous year.
Furthermore, a digital asset committee has been established to play a pivotal role in shaping regulatory pledges, advancing legislation, and developing frameworks for digital assets.
“The objective is to place the Digital Asset Committee directly under the president to ensure it has the expertise and authority to implement effective policies,” remarked Rep. Min Byeong-deok, chair of the committee.
The news of South Korea’s election of a pro-Bitcoin president and the upcoming endeavors regarding spot crypto ETFs have sparked considerable interest in the nation’s crypto landscape.
