In a significant political shift with potential ripple effects on the global cryptocurrency landscape, Lee Jae-myung has clinched the presidency in South Korea, defeating incumbent Kim Moon-soo on Wednesday. This election marks a pivotal moment for South Korea’s burgeoning crypto sector, with Lee’s crypto-friendly stance winning the support of the nation’s roughly 15 million crypto investors.
A New Era for South Korea’s Crypto Community
Lee Jae-myung, representing the Democratic Party of Korea, emerged victorious in a tightly contested race against Kim Moon-soo from the Conservative People Power Party, securing nearly three million more votes out of over 17 million cast. With 49.4% of the vote, Lee’s win signals a shift in national policy—one that could transform South Korea into a beacon for cryptocurrency innovation and regulation in Asia.
Lee’s promises during the campaign trail were music to the ears of crypto enthusiasts. He pledged to legalize spot cryptocurrency exchange-traded funds (ETFs) and open the doors for institutional investors, including the National Pension Fund, to invest in digital assets. These commitments, reported by local media outlet The Korea Herald in May, are seen as a potential catalyst for heightened crypto activity in the region. This aligns with recent developments where Litecoin surged 7% as the SEC is likely to approve a spot ETF with 90% odds, indicating a broader trend towards ETF acceptance.
Institutional Investors and Stablecoins: A Promising Outlook
The prospect of institutional investments in cryptocurrencies is a tantalizing one. Analysts suggest that allowing entities like the National Pension Fund to dip their toes into the crypto waters could inject substantial liquidity and legitimacy into the market. “This could be a game-changer,” says Jin-ho Kim, a Seoul-based crypto analyst. “We’re talking about a major shift in how digital assets are perceived by traditional financial institutions.”
Lee has also advocated for the development of a won-based stablecoin market. His reasoning is straightforward yet profound: to curb the outflow of national wealth. During a policy discussion with YouTube creators, Lee emphasized the importance of keeping financial resources within the country—an approach that, if successful, might set a precedent for other nations eyeing stablecoin initiatives. This is similar to recent efforts by Nasdaq, which is seeking SEC approval to list a 21Shares Dogecoin ETF, further illustrating the growing interest in regulated digital asset products.
Navigating Regulatory Waters
Over the past two years, South Korea has been laying the groundwork for a more structured crypto environment. The passage of the Virtual Asset User Protection Act in 2023 was a major step forward, defining digital assets and establishing penalties for unfair transactions. This legislation also empowered the Financial Services Commission (FSC) to regulate service providers, a move seen as crucial in fostering a safe and fair crypto market.
Under these new regulations, non-profits and exchanges have been given the green light to operate within the country, bolstering the sector’s legitimacy. This regulatory framework, combined with Lee’s pro-crypto policies, positions South Korea to potentially lead Asia in digital asset innovation.
Looking Ahead: Opportunities and Challenges
Lee Jae-myung’s presidency opens up a world of possibilities for South Korea’s crypto sector, but it also raises questions. Will his administration be able to deliver on its promises without encountering significant pushback from more conservative elements within the government? And how will global markets react to South Korea’s evolving stance on cryptocurrency?
As other Asian nations like Pakistan and Hong Kong also push for progressive crypto measures, the region is rapidly becoming a hotbed for digital asset development. With a global market cap reaching $3.4 trillion, the stakes have never been higher.
The path ahead is fraught with both opportunities and challenges, but one thing is clear: South Korea is poised to play a crucial role in shaping the future of cryptocurrency. The coming months will undoubtedly be pivotal as Lee’s policies begin to unfold, potentially redefining the landscape for digital finance in Asia and beyond.
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This article is based on: South Korea Elects Crypto-Friendly Lee Jae-myung as New President
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
