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On April 16, 2025, South Korean presidential candidate Hong Joon‑pyo of the People Power Party declared his commitment to implementing “significant regulatory reform” in the blockchain and virtual asset sectors, modeling his approach after former U.S. President Donald Trump’s deregulatory policies. Speaking at his campaign office in Yeouido, Seoul, Hong emphasized his vision to integrate blockchain technology into public and administrative services while promoting virtual assets as a standalone strategic industry.
Hong further outlined plans to invest at least 50 trillion won over the next five years in research and development of "super-gap" technologies, including artificial intelligence, quantum computing, and room-temperature superconductors. He also pledged to dismantle regulatory barriers in the blockchain and digital asset space in a way reminiscent of Trump-era policies, aiming to stimulate innovation and accelerate the adoption of next-generation technologies.
His stance aligns with the spirit of the U.S. Executive Order No. 14178, “Strengthening American Leadership in Digital Financial Technology,” signed by President Trump on January 23, 2025. The order overturned previous initiatives, banned the development of central bank digital currencies (CBDCs), and created a multi-agency task force to draft a comprehensive digital asset regulatory framework within 180 days.
Domestically, South Korea has laid the groundwork for crypto regulation through the Act on Protection of Virtual Asset Users (VAUPA), enacted on July 18, 2023, and effective from July 19, 2024. This legislation differentiates between general virtual assets and security tokens, while requiring virtual asset service providers (VASPs) to comply with anti-money laundering regulations. On February 13, 2025, the Financial Services Commission released a roadmap to gradually open the digital asset market to corporate participation, reinforcing the synergy between regulation and industrial growth.
The South Korean virtual asset market continues to gain momentum, with over 16 million investors—representing approximately 32% of the population—engaged in digital asset trading. Trading volumes in virtual assets are approaching those of the domestic stock market, underscoring the sector’s growing relevance as an alternative financial instrument and the need for robust infrastructure and consumer protection.
Politically, Hong’s move appears targeted at younger demographics—60% of crypto investors are in their 20s and 30s—potentially forming a crucial support base. However, public opinion polls indicate that he trails Democratic Party candidate Lee Jae-myung by 12 to 18 percentage points in various head-to-head matchups. By driving policy innovation through regulatory reform, Hong seeks to shift the electoral dynamic ahead of the June 3, 2025 presidential election.
The Korea Blockchain Association (KBCA) welcomed the announcement, stating that “policy reform” will accelerate innovation and cross-sector collaboration. However, the organization stressed the importance of a well-defined operational roadmap that includes security standards, governance protocols, and auditing mechanisms to ensure market stability and consumer protection.
Analysts at KPMG, in their “Virtual Assets 2024 Review and 2025 Outlook,” highlighted the critical need for adaptive regulatory frameworks that balance industry growth with systemic risk mitigation. Meanwhile, legal experts from Chambers & Partners noted that the current definition of virtual assets under the AML Act must evolve to cover tokenized real-world assets and decentralized finance (DeFi), urging collaboration between financial authorities and technology stakeholders.
Despite optimism, international observers have raised caution. The aggressive deregulation of digital assets in the United States has drawn criticism for creating conflicts of interest and exposing financial systems to potential vulnerabilities. Critics argue that a pro-crypto stance without sufficient oversight may open the door to abuse, ranging from money laundering to infrastructure risks.
With his vision, Hong Joon‑pyo presents a forward-looking economic paradigm driven by advanced technologies. The success of his blockchain and virtual asset reform agenda will hinge on the government’s ability to harmonize the interests of corporations, industries, and consumers—building a digital ecosystem that is inclusive, secure, and sustainable.