Here’s What’s at Stake for Crypto in South Korea’s Upcoming Election

South Korea is preparing for the election of a new president of June 3, and although other questions in Korean politics may be more dominated by the election, such as the recent abolition of the previous president, candidates have asked digital property as a key issue of campaign in a nation where almost one -third of the citizens of their own crypto.

Dr. Sangmin Seo, a South Korean technologist who runs the Kaia DLT Foundation, Kripto thinks that everything is becoming a political instrumental.

“These elections, Korean policy, sees cryptocurrencies as a narrative to gain voters’ hits, positioning it as another national growth engine, except AI and the semiconductor,” SEO said Decipher.

“It is widespread support for the idea that the Korean crypto industry cannot lose its competitiveness on the global stage. Both foreign policies feel urgency to catch regulatory progress in other countries.”

Democratic Party candidate Lee Jae-Myung and nominated for People Power Kim Moon-Soo found rare common ground Support for the crypto etf.

However, two candidates are suddenly different from Stabibleco’s policy.

Lee supports the stable trails obtained for the suppression of capital flight or money leaving its shores, citing approximately $ 40.8 billion dollars from Korean exchange in Q1.

The country should “prevent national wealth to miss abroad,” he said during discussions about politics earlier this month.

As an anterior runner, Lee plans to create a monitoring system and reduce transaction costs, providing investors with a regulated approach to cryptocurrencies.

Kim, meanwhile, seeks to dismantle the rule with one alternating and one banks to alleviate bank limits to crypto companies. He Tax reduction plans For the growing middle class of the country, allowing a transparent crypto market and enabling cryptocurrencies to work.

But for those crypto etf to enter, regulators should work with parties and their positions on digital property.

Last week, Commission for Financial Services (FSC) Published details Discussions May 1, which would allow for non -profit organizations and the crypto stock market to sell digital assets starting from June.

The same week, the Democratic Party of South Korea launched Digital Property Committee to establish comprehensive regulations.

Decipher They reached both sides for comments on their cryptocurrency views.

Learning from the past

The consensus between the two main parties suggests that the crypto and the regulations on digital property in the country could soon relax, even with concern to repeat what happened Kwon AND collapse teraalgorithmic stable conditions.

In addition to the impact on consumers, Terra collapse led to the crypto industry of South Korea “He referred to one of the darkest markets, and some call him gambling, “SEO said.

Together with several other high scandals, including one involving political trade activities, the reign in the industry is a priority.

“Now, the legislators communicate with the experts in the industry who studied the first triggers, such as the EU, Singapore, USA -a UAE, to create the most appropriate regulatory framework for the Korean market, and this includes consumer protection measures,” SEO added.

ETFS

Candidates also show interest in launching the Krypto ETF in Korea, although the topic has repeatedly floated politicians since they have now launched their Spot Bitcoin ETF and a little concrete progress in their introduction.

“[The] The first step should start from judgment that the party can manage the Spot ETF, including custody, “said Ryan Yon, a senior Tiger Research analyst, an analytics company on a web3 with expertise in Asian markets, said Decipher.

“The classification of investors depends on their risk tolerance, but I think ETF will open to everyone,” Yoon noted.

KP JANG, CEO of Strategy on Seoul based in Seoul, an advertisement for Xangle intelligence, said Decipher This is likely to happen, but with certain conditions.

“The stabibella won, which will support, is likely to circulate primarily within Korea,” Jang said.

They would be “relatively less prone to launching shocks in the global market such as the Terra-Luna incident”, given that Korean won (Krw) did not use “as a valua of a settlement” elsewhere.

The proposed Stablecoin won will also be released as a “fully competition model”, said Jang, adding that “you will win the” real Korean “will be” in full against the amount issued “.

Such claims in collaterals would greatly increase stability and reduce “the likelihood of collapse like the one in the past cryptic-algorithmic models,” he said.

Yoon echoed with Tiger’s research, saying that repeating this kind of failure is a little probably.

However, South Korea is missing “official discussions or regulations to protect stable users,” Yoon said, citing US USA An ingenious act could serve as a “potential reference”.

Edited Sebastian Sinclair