Politicians court crypto investors ahead of presidential election
Representations of Bitcoin are seen in this illustration, November 2024. Reuters-Yonhap
Ahead of the June 3 presidential election, both the ruling and opposition parties are racing to unveil crypto-related pledges and bring in industry experts to win over the country's 16 million crypto investors, industry officials said Wednesday.
The People Power Party (PPP) moved first on Monday, announcing seven key initiatives aimed at promoting the industry.
These include allowing the issuance, listing and trading of spot crypto exchange-traded funds this year, as well as institutionalizing virtual asset transactions for corporations and institutions. The PPP also plans to abolish Korea's "single-bank policy," which restricts cryptocurrency exchanges to partnerships with only one bank for deposit and withdrawal accounts.
These proposals reflect the market’s long-standing push for lighter regulations. The PPP pledged to establish a special committee on virtual assets under its presidential candidate, signaling a strong commitment to swift policy execution.
"Digital assets are no longer just investment tools. They hold the potential to become a new store of value, like gold in the 21st century," said PPP policy chief Kim Sang-hoon at the party policy meeting Friday. "Now is the time to move past hesitation and usher in a new era focused on the active development and institutionalization of digital assets."
Meanwhile, the Democratic Party of Korea (DPK) is preparing to introduce the so-called Digital Asset Basic Act.
Spearheaded by Rep. Min Byoung-dug, the proposed legislation defines digital assets as "having economic value represented in digital form." This is a step forward from the earlier Virtual Asset User Protection Act, which focused on foundational user safeguards.
"We need new legislation that moves beyond the limitations of existing regulations and meets the demands of the evolving financial market," Min said during the legislative hearing on Sunday.
Lee Jae-myung, who secured the DPK's presidential nomination, is also reportedly ramping up efforts to formulate crypto-related policy pledges. Kim Yong-jin, a security token offering expert and professor at Sogang University, has also joined the policy advisory group supporting Lee.
This political courtship stands in stark contrast to the previous presidential election three years ago, when virtual assets were widely viewed as speculative and risky.
Industry officials say Korean crypto investors are now emerging as a political force, much like in the United States, where crypto voters have shown strong support for Donald Trump.
Given that a large share of investors are in their 20s and 30s, crafting policies that appeal to this group is considered important for securing victory.
"It's encouraging to see virtual assets being addressed in campaign pledges, especially as Korea's regulatory framework gradually takes shape," said an industry official at a Web3 company. "However, unfulfilled promises are meaningless. I hope this round of pledges leads to concrete policy implementation."