Presidential Contenders Back Bitcoin ETFs
South Korea’s top three presidential contenders have all taken a firm stand in favor of the legalization of spot Bitcoin exchange-traded funds (ETFs), a potential shift from the country’s hardline stance against institutional crypto investment.
Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, noted the candidates’ consensus in a May 14 X post, writing:
“All three top South Korean presidential candidates back #Bitcoin ETFs and institutional investment.”
Despite this mutual initiative, however, Bitcoin ETFs remain banned in South Korea, leaving crypto trading only to retail investors.
Aspirants Pledge Reforms—Again
Democratic Party leader Lee Jae-myung promised on May 6 to legalize spot crypto ETFs, lower the charges of transaction fees, and offer a secure climate for investment to the younger generations, according to The Korean Economic Daily.
Lee is also joined by People Power Party’s Kim Moon-soo and New Reform Party’s Lee Jun-seok in this stance. However, the same promises given during the 2024 campaign are still unredeemed, and one questions the sincerity and effectiveness of these renewed promises.
Experts Urge Caution Amidst Hopes
Even though political support for crypto reform appears to be gaining ground, experts urge caution.
“Their commitments indicate the likelihood of a change. But history mellows optimism,” commented blockchain consultant Anndy Lian.
He also mentioned that while coordination with international trends such as the US and Hong Kong is present, implementation will ultimately depend on several regulatory and market considerations.
The Financial Services Commission has indicated openness but others remain cautious due to the People Power Party’s previous failure to deliver on promises of such ETFs in the run-up to President Yoon’s impeachment.
Lessons from Hong Kong’s ETF Launch
Hong Kong, where Bitcoin and Ether ETFs were legalized in April 2024, is a cautionary tale. Trading activity, despite regulatory backing, fell far behind its U.S. counterparts, raising questions whether South Korean reforms would even breathe new life into its crypto market in the near future.
With the next presidential election approaching, South Korea’s crypto community retains hope with anxiety—hoping for meaningful change, but fearing political déjà vu.
