Lee Jae-myung Boosts South Korea’s Crypto with New Policies

Lee Jae-myung, newly elected President of South Korea, announced policies to revolutionize cryptocurrency, including ETF legalization and won-based stablecoin development.

These changes promise to bolster South Korea’s digital asset market, attracting institutional investment and increasing regulatory clarity.

South Korea to Legalize Crypto ETFs, Eyes Institutional Investment

Lee Jae-myung’s election marks a pivotal shift in South Korea’s cryptocurrency landscape. His policies aim to legalize spot crypto ETFs and create a won-based stablecoin. Institutional investors, including the National Pension Fund, can now participate in crypto markets. “While I am not from the crypto or finance sectors, my administration will prioritize the legalization of crypto ETFs and support a won-based stablecoin to secure our national wealth and create a thriving domestic digital asset market,” said President Lee Jae-myung.

Lee’s administration signals a departure from previous regulations. Efforts to support a domestic digital asset market highlight the government’s intention to retain national wealth and innovate within the fintech space.

Institutional Crypto Entry to Boost BTC and ETH Liquidity

Institutional entry into crypto markets could enhance trading activity and liquidity across major cryptocurrencies, notably BTC and ETH. The potential of a won-based stablecoin is expected to attract local fintech engagement.

Regulatory adjustments may create political and economic shifts, encouraging international crypto firms to engage with the South Korean market. This could lead to increased cross-border fintech collaborations.

Impact of Terra Collapse on South Korea’s Stablecoin Strategy

South Korea’s 2023 Virtual Asset User Protection Act created a framework for the current policies. The Terra collapse serves as a cautionary tale influencing stablecoin regulation strategies.

Experts predict that these shifts could push South Korea to the forefront of crypto innovation. Historical trends suggest a potential increase in domestic and global crypto adoption.