Crypto industry weary as populist pledges flood presidential race
Visitors watch various coin prices at a Bithumb lounge in southern Seoul, May 23. Yonhap
The crypto industry is voicing frustration over a wave of populist policy pledges ahead of the June 3 presidential election, as many are widely seen as unrealistic, industry officials said Thursday.
One prominent example is the proposed establishment of a tentatively named Korea Digital Asset Exchange, a joint initiative between a local government and crypto exchanges aimed at facilitating the trading of digital assets such as stablecoins.
The idea reportedly originated from a subcommittee within the main opposition Democratic Party of Korea’s (DPK) election campaign team and does not reflect the party’s official stance.
Nevertheless, it has received a lukewarm response from industry officials, who argue that the concept of establishing a public-private crypto exchange in a regional area lacks practicality.
They also point out that proposing support for trading Korean won stablecoins and security tokens — which are only in the early stages of discussion — seems premature, especially given that the Busan Digital Asset Exchange, a similar initiative, has struggled to gain momentum.
The crypto industry has also expressed strong opposition to the DPK presidential candidate Lee Jae-myung’s campaign pledge to cut trading fees for digital assets.
While the proposal is seen as an attempt to win over the country’s estimated 10 million crypto investors, critics warn that it could deepen the dominance of top-tier exchanges while threatening the survival of smaller players.
People Power Party candidate Kim Moon-soo also made pledges such as establishing a coin exchange funded by financial companies, but the response from the industry and market has been cold, as the proposal is considered impractical given the current lack of adequate laws and regulations.
His other pledge to allow public institutions, such as the National Pension Service and Korea Investment Corp., to invest in virtual assets has also been labeled an overly optimistic and populist promise that is not yet feasible.
"Discussions on practical regulatory improvements have been pushed aside, replaced by unrealistic messages aimed solely at winning votes," one crypto industry official said. "To enhance the sustainability and competitiveness of the industry, long-term policies such as clearer regulations and infrastructure development must take priority over short-term, popularity-driven pledges."