South Korea Presidential Candidate Promises 100% Deregulation for Crypto Industry

South Korea’s crypto industry is on the brink of significant changes, as presidential candidate Hong Joon-pyo has announced plans to relax regulations in a manner similar to the approach taken by the Trump administration in the United States. During a campaign event in Seoul’s Yeouido district, Hong declared his intention to eliminate regulations to foster the growth of blockchain and virtual assets, aiming to elevate these technologies to a fully recognized industry.

Hong’s proposal includes integrating blockchain and virtual assets into public services, a move that aligns with the growing global trend of embracing digital assets. This announcement comes just days after former U.S. President Donald Trump signed a resolution repealing an IRS rule that imposed traditional broker-style reporting requirements on decentralized finance (DeFi) platforms and developers. This landmark legislation was seen as a significant step towards industry deregulation.

The candidate’s pivot towards a crypto-friendly stance is influenced by the rapid digital asset strategy being pursued by Washington. The U.S. has taken steps such as establishing a Strategic Bitcoin Reserve, making it the first country to formally begin stockpiling crypto as a national asset. This has put pressure on South Korean lawmakers and experts to respond similarly, with financial leaders in Seoul recently calling for the integration of Bitcoin into national reserves and the launch of a won-backed stablecoin.

However, there is resistance to these proposals. The Bank of Korea has publicly ruled out holding Bitcoin as a reserve asset, citing its price volatility and failure to meet IMF standards. Despite this, the U.S. actively stockpiling Bitcoin and hosting White House crypto summits has spurred South Korean political candidates to show that they do not intend to fall behind in the digital asset race.

Whether Hong Joon-pyo’s promises will translate into actual policy will depend on the outcome of the upcoming presidential election, which is expected as early as May, if current President Yoon Suk Yeol’s impeachment is upheld. The election will be a critical moment for determining the future direction of South Korea’s approach to digital assets and blockchain technology.