Anndy Lian
South Korean presidential candidates support legalization of Bitcoin ETFs
South Korea may be poised to follow Hong Kong’s lead in legalizing spot Bitcoin exchange-traded funds (ETFs), as top presidential candidates signal support for institutional crypto adoption.
However, analysts remain cautious about the timeline for actual policy implementation, reports Cointelegraph.
On May 14, CryptoQuant CEO Ki Young Ju wrote that “all three major South Korean presidential candidates support Bitcoin ETFs and institutional investment,” underscoring a rare consensus on crypto reform. At present, South Korea bans institutional access to crypto ETFs, meaning retail investors account for 100% of local market volume.
Democratic Party renews crypto-friendly platform
Democratic Party leader Lee Jae-myung recently pledged to legalize spot crypto ETFs, reduce transaction fees, and foster a safer investment environment — particularly for younger generations. The promises echo similar initiatives from the party’s 2024 campaign, which stalled amid legislative gridlock.
Lee’s comments reflect growing interest in aligning South Korea with global crypto finance trends, including developments in the U.S., where spot Bitcoin ETFs have drawn tens of billions in institutional inflows since their approval earlier this year.
Experts warn of political inertia and structural hurdles
Despite political momentum, blockchain adviser Anndy Lian warned against assuming quick progress. “The pledges are promising, but history tempers optimism,” Lian told Cointelegraph, referencing past failures by the ruling People Power Party to follow through on ETF reform prior to President Yoon’s impeachment.
He noted that South Korea’s Financial Services Commission has shown signs of “regulatory openness,” but cautioned that structural factors — including lingering concerns about volatility, oversight, and international compliance — could delay execution.
Hong Kong’s own spot Bitcoin and Ether ETF launches on April 30, while symbolically important, saw lackluster trading volume relative to their U.S. counterparts — a reminder that legal approval doesn’t always translate to immediate market traction.
Whether South Korea will break the cycle of political promises without follow-through remains to be seen, but the growing chorus of support suggests the next administration may finally act on long-delayed crypto legislation.
Recently we wrote that the U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale’s proposed spot Solana (SOL) ETF, pushing the review deadline to October 2025.
Source: https://tradersunion.com/news/cryptocurrency-news/show/262159-south-korean-presidential-candidates/
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