4-6-2025 – Lee Jae-myung of South Korea’s Democratic Party has emerged triumphant in the nation’s 21st presidential election, securing a commanding lead over his rival. Appearing alongside his wife, Kim Hye-kyung, outside their home in Incheon’s Gyeyang-gu, Lee struck a cautious yet grateful tone. “The votes are still being tallied, but should these results hold, I salute the wisdom of our people in making this momentous choice,” he declared, paying homage to the electorate’s resolve.
Lee’s campaign stood out for its bold embrace of cryptocurrency, a departure from the platforms of previous elections. The 60-year-old leader championed the creation of a Korean won-backed stablecoin, a move he argued would stem the flow of national wealth to foreign digital currencies. “We must build a stablecoin market rooted in our currency to safeguard our economic sovereignty,” Lee asserted during a policy debate in the campaign’s final days. His vision extends to legalising spot cryptocurrency exchange-traded funds (ETFs), with a call for major institutions, including the National Pension Fund, to participate in the crypto market. “I am committed to fostering a secure environment where young Koreans can invest in their futures through regulated digital assets,” he pledged, framing crypto as a cornerstone of long-term wealth creation.
The defeated candidate, Kim Moon-soo of the People Power Party, also endorsed spot crypto ETFs and pension fund involvement but diverged sharply on regulation. Kim criticised South Korea’s restrictive “one-exchange-one-bank” policy, which tethers each crypto exchange to a single bank for real-name account verification. He argued that this rule stifles competition, hindering new and smaller platforms from thriving due to limited banking partnerships. This regulation, introduced in January 2018, mandates that traders use verified bank accounts aligned with their exchange profiles, effectively barring foreigners and minors from trading to curb money laundering. A month later, in February 2018, Choe Heung-sik, then-head of the Financial Supervisory Service, urged banks to collaborate with exchanges, laying the groundwork for a more cohesive crypto ecosystem.
South Korea’s regulatory landscape evolved further with the March 2020 Amendment to the Act on the Reporting and Use of Specific Financial Transaction Information, which took effect in March 2021. This legislation granted cryptocurrencies legal status and established a robust framework for virtual asset service providers. Exchanges must now adhere to stringent requirements: registering real-name bank accounts, obtaining Information Security Management System certification from the Korea Internet Security Agency, submitting detailed operational data to the Korea Financial Intelligence Unit, and enforcing rigorous Anti-Money Laundering and Know Your Customer protocols to ensure transparency and combat illicit activity.
