South Korea may be on the brink of a major crypto breakthrough, as its top presidential contenders have expressed interest in legalizing spot Bitcoin exchange-traded funds (ETFs), signaling a potential shift in the nation’s approach to digital asset regulation.
Despite the optimistic tone from political leaders, experts remain cautious about how quickly real policy changes might take place.
“All three main candidates are in favor of Bitcoin ETFs and want to open the doors to institutional investors,” said Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, in a post on X dated May 14. He noted that South Korea’s current laws prevent institutional participation in crypto, meaning the market is currently driven entirely by retail investors.
On May 6, Democratic Party head Lee Jae-myung pledged to push for the legalization of spot crypto ETFs, reduce trading fees, and build a safer investment environment—especially aimed at helping younger generations grow their wealth, according to The Korean Economic Daily.
This isn’t the first time the Democratic Party has made similar commitments. Their 2024 campaign platform included promises to approve spot ETFs, though progress has been slow so far.
Promises Made, But Will They Be Kept?
Although the pro-crypto stance of these candidates could pave the way for new legislation, some analysts remain skeptical.
“The candidates’ commitments to legalize spot Bitcoin ETFs and lower fees are encouraging, but past experiences tell us not to get ahead of ourselves,” said Anndy Lian, blockchain adviser and author. “Even if they follow Hong Kong’s lead, the success of such ETFs will depend on broader market dynamics.”
Lian also suggested that a crypto-supportive president could bring South Korea in line with global trends—such as the United States, where Bitcoin ETFs have seen significant investor interest. He added that South Korea’s Financial Services Commission seems to be adopting a more open stance toward crypto regulation.
Still, history offers a note of caution. The People Power Party, which came to power in 2022, also promised to end the ban on crypto ETFs and reform banking rules affecting exchanges. However, these promises stalled after President Yoon’s impeachment.
Meanwhile, Hong Kong launched its first spot Bitcoin and Ethereum ETFs on April 30, 2024. Despite the fanfare, their initial trading volume fell short of expectations when compared to similar funds in the United States.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
