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- Lee Jae-myung was elected president of South Korea with 49.42% of the votes.
- He pledges to support spot crypto ETFs and a Korean won-backed stablecoin.
- His government aims to regulate crypto while encouraging innovation.
South Korea has chosen a new president. Lee Jae-myung of the left-wing party won with 49.42% of the votes, defeating his right-wing opponent Kim Moon-soo. The election came after a period of unrest and disapproval of former president Yoon Suk-yeol, especially regarding stalled crypto reforms and lack of progress in digital asset policy.
Yoon could not sustain his leadership as politics turned against him and public anger grew. His impeachment was the categorical shift in the country’s political course. This year voter turnout was 79.4%, the highest since 1997.
The citizens came out in huge numbers expecting a real change. Lee’s campaign was based on social support, economic reform, and policies that would be ready for the future. One area he strongly highlighted was cryptocurrency, which is the industry that grew so fast in South Korea.
South Korea to Consider Local Crypto ETFs
Lee Jae-myung assures a different course in the digital economy. His government would allow the local use of spot cryptocurrency exchange-traded funds, which, according to the administration, would enable investors to trade digital assets such as Bitcoin on domestic bourses, thus offering greater choices and visibility.
Currently, South Korea prohibits the local trading and issuance of crypto ETFs. Yet the success of such products in the US has prompted Korean regulators to reconsider. Lee’s pledge could indeed speed up discussions that have been long stalled and make crypto more accessible and safer for retail investors.
A second important step would involve the creation of a stablecoin market pegged to the Korean won. This would ensure that the funds remain in the country and also provide stability in the digital transaction space. The government plans to regulate the ecosystem of stablecoins through new legislation that works for transparency and protection for investors.
Innovation Zones to Boost Blockchain Startups
Lee’s administration will also try to pass the second part of South Korea’s digital asset legislation. That would focus on stablecoins and bolster the regulatory framework for exchanges. But Lee is about more than just regulation. He is a proponent of innovation zones: designated areas where blockchain regulations are lighter, in order to attract new businesses and encourage testing.
These regions will aim to strike a balance between safety and development. With reduced regulatory hurdles, the country can stay in the race within the expanding global cryptocurrency industry. South Korea has already established a significant footprint in cryptocurrency.
With close to 10 million users, it makes among the most actively traded digital asset markets. The incoming administration plans to build on this foundation not only through rule enforcement but also by fostering growth. The previous president had promised reforms in cryptocurrency too, but then it was stalled and opposed.
Most expect that the evolving political dynamics and prevailing public interest may facilitate quicker developments this time around than under the previous administration. A presidency by Lee could be pivotal. His leadership would finally bring together policy, regulation, and innovation for Korea’s crypto future.
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