South Korea's Lee Jae-myung Pledges 31% Spot Crypto ETF Approval

South Korea’s Democratic Party leader Lee Jae-myung has pledged to approve spot crypto exchange-traded funds (ETFs) and implement other crypto-friendly measures if elected as president. This announcement was made on May 6 as part of a broader initiative aimed at providing more investment opportunities for the country’s youth, a key demographic for the upcoming June 3 election.

Lee emphasized the importance of creating a safe investment environment for young people to build assets and plan for their future. He also promised to legalize spot crypto ETFs, reduce transaction fees, and enhance consumer protection measures. This marks the first time Lee has included crypto in his presidential campaign, although the Democratic Party had made similar promises during the 2024 general election campaign, which did not progress as expected.

The ruling People Power Party has also made crypto policy promises, including allowing spot crypto ETFs, dismantling the controversial one-exchange-one-bank rule, and establishing a regulatory framework for stablecoins. The one-exchange-one-bank rule limits each crypto exchange to working with only one local bank, aiming to prevent money laundering and ensure transparency by verifying the identities of crypto investors.

Industry officials estimate that 16 million people, or 31% of the country’s population, have access to a crypto account. This highlights the significant interest and participation in the crypto market within South Korea. The People Power Party’s candidate, Kim Moon-soo, is running for the presidency, following the impeachment of former leader Yoon Suk Yeol, who declared martial law in December, triggering a temporary fall in cryptocurrency prices.

Lee's pledge to approve Bitcoin ETFs is a strategic move that aligns with the global trend of increasing acceptance and regulation of cryptocurrencies. By embracing digital assets, South Korea could position itself as a leader in the crypto industry, attracting investment and talent from around the world. This could also lead to the development of new financial products and services, further boosting the country's economic competitiveness.

The approval of spot crypto ETFs would provide investors with a regulated and secure way to gain exposure to Bitcoin and other digital assets. This could attract a wider range of investors, including institutional investors who have been cautious about entering the crypto market due to regulatory uncertainties. By providing a clear regulatory framework, Lee's administration could help to build trust and confidence in the crypto industry, fostering its growth and development.

In summary, Lee Jae-myung's pledge to approve Bitcoin ETFs and cut crypto transaction fees is a significant development in South Korea's approach to digital currencies. This move reflects a growing recognition of the potential of blockchain technology and digital assets in driving economic growth and innovation. By embracing cryptocurrencies, South Korea could position itself as a leader in the crypto industry, attracting investment and talent from around the world. This could also lead to the development of new financial products and services, further boosting the country's economic competitiveness.