Crypto Investors Become Political Power Brokers
While usage of cryptocurrency has reached record highs in South Korea, the presidential election on June 3 has gone online. About 16 million crypto investors now represent around 36% of the nation’s eligible voters, leading to attempts by major parties to win them over with greater effort.
Bitcoin’s domestic market capitalization has increased beyond 2,600 trillion won—reportedly more than the sum of all KOSPI-listed firms—demonstrating the sector’s growing clout in national politics and economies.
Democratic Party Woos Investors With Reform Platform
The Democratic Party has recruited digital finance experts and offered bill drafts to attract crypto-conscious voters. Sogang University Professor Kim Yong-jin, a renowned tokenized securities expert, joined the party’s campaign team.
Legislator Min Byeong-deok proposed the Basic Digital Asset Act, aimed at normalizing permission for stablecoin and aligning it with South Korea’s law of legal tender. The proposal seeks to usher in regulatory clarity and consumer protections without hindering innovation.
People Power Party Rolls Out Comprehensive Crypto Roadmap
The rightist People Power Party is counterattacking with its own powerful digital asset agenda. Candidate Kim Moon-soo emphasized that even though millions are being spent on crypto, there remain no investor protections.
Seven of their platform’s major initiatives are:
- Splitting the one-exchange-one-bank structure
- Institutionalizing company crypto trading
- Enabling trading in spot crypto ETFs by 2025
- Placing South Korea at the center of an international blockchain and virtual asset hub
Regulatory Shifts Reinforce Market Regulation
In a sign of broader industry acceptance, the Financial Services Commission announced that from June, non-profit organizations and virtual asset exchanges are allowed to sell virtual assets but need to have robust internal controls and anti-money laundering practices.
This regulatory shift is part of a broader effort to mainstream South Korea’s virtual asset market and shut down chronic compliance loopholes.
