Michaela
South Korean presidential candidates have expressed a desire to strengthen cryptocurrency policies, with plans that include introducing a won-backed stablecoin to help position digital assets as a key driver of future economic growth and bridge digital finance with traditional markets.
According to a report by The Korea Herald, Democratic Party of Korea presidential candidate Lee Jae-myung, who is currently leading in the polls, proposed the development of a won-backed stablecoin market. Lee frames this initiative as a strategic measure to curb capital outflows and strengthen the domestic digital finance ecosystem.
βWe need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas,β Lee stated in a recent policy discussion.
Lee has emphasized the potential of a won-backed stablecoin as a means to strengthen South Koreaβs financial resilience. By reducing dependence on foreign currencies and keeping economic value within national borders, he argues such a move could enhance monetary stability. Currently, South Korea bans the issuance of homegrown stablecoins, leaving the local market reliant on foreign-issued assets like USDT and USDC.
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Furthermore, Lee and People Power Party candidate Kim Moon-soo have both committed to advancing the legalization and adoption of spot cryptocurrency exchange-traded funds (ETFs). Their proposals would enable digital assets like Bitcoin (BTC) to be listed and traded on South Koreaβs domestic stock exchanges.
Lee is reportedly aiming to implement an integrated monitoring framework and reduce transaction fees to make cryptocurrency mΠ°rkets more transparent and accessible. His platform emphasizes the importance of incorporating digital assets into diversified investment portfolios, arguing that doing so can serve as an effective strategy for managing the distinctive volatility associated with the crypto market.
The Democratic Party of Koreaβs presidential candidate has also proposed allowing institutional investors, including the National Pension Fund, to make direct investments in digital assetsβprovided certain value stability conditions are met.
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The support from both presidential candidates significantly raises the chances of regulatory progress in South Koreaβs crypto landscape. If approved, the introduction of crypto ETFs would enable retail investors to gain exposure to digital assets through regulated channelsβoffering a more accessible alternative to direct cryptocurrency ownership, which often involves complex custody and security considerations.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engΠ°ging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
