In the context of the United States taking strong steps to legalize and promote the digital asset sector, a South Korean presidential candidate – Mr. Hong Joon-pyo – unexpectedly declared he would adopt a 'Trump-style strategy' to eliminate legal barriers to crypto and bring blockchain technology into public services.
This move could spark a revolution in cryptocurrency policy in South Korea – one of the most vibrant crypto markets in the world but has also faced stringent government oversight for many years.
"Eliminate regulations like Trump did" – Shocking statement from Mr. Hong Joon-pyo
Speaking at a campaign office in Yeouido district, Mr. Hong Joon-pyo – one of the leading candidates for the upcoming presidential election – declared:
“To develop blockchain and virtual assets into a unified industry, I will eliminate regulations just as the Trump administration did in the US.”
This statement is not merely a campaign promise; it also reflects a decisive mindset in policy-making when it comes to 'upgrading' crypto into a fully recognized industry while integrating blockchain technology into the state’s public service system.
Affected by the strong actions of the US
Mr. Hong's message comes right after former US President Donald Trump signed the first cryptocurrency legislation in the country's history, eliminating a controversial regulation from the IRS that required DeFi platforms and developers to act like traditional 'brokers.'
This is seen as a major turning point in the process of legalizing crypto in the US, and quickly sparked a political backlash in many countries, including South Korea.
Not only that, Mr. Trump also signed a decree to establish a Strategic Bitcoin Reserve, making the United States the first country to officially begin accumulating Bitcoin as a national asset. This move serves as an implicit declaration that crypto is no longer a speculative 'game' but a strategic tool in the global monetary race.
South Korea does not want to fall behind
In response, policymakers in Seoul have made swift moves:
Call for the integration of Bitcoin into national reserves.
Propose issuing a stablecoin pegged to the won, aiming to ensure monetary sovereignty as the USD-pegged stablecoin dominates the global market.
However, the Bank of Korea (BoK) remains cautious. On March 16, BoK announced it would not hold Bitcoin as reserve assets, citing high price volatility and failure to meet IMF standards.
Nevertheless, pressure from the US and domestic public opinion is growing, forcing Korean politicians, especially during the election season, to express clear views on the digital asset sector.
The crypto policy race ahead of the presidential election
Currently, the political situation in South Korea is rapidly evolving, with a high likelihood of a new presidential election taking place in May, if the incumbent President Yoon Suk Yeol is officially impeached by the National Assembly.
In this context, Mr. Hong Joon-pyo emerges as a candidate representing innovation in technology and financial policy, particularly in the fields of blockchain and crypto – which has a significant young voter base.
If elected, he promises to:
Eliminate legal barriers to virtual assets.
Legalize and recognize crypto as an independent economic sector.
Apply blockchain in public service systems to increase transparency and efficiency.
Impact on crypto users and international investors
With a large market size and a very active crypto community, South Korea could become the next hotspot for capital, projects, and blockchain products if policies are relaxed. This opens up many opportunities but also comes with challenges:
Opportunities:
International projects can easily access Korean users.
Exchanges, DeFi services, NFTs, AI blockchain… can operate publicly and transparently.
Increase competition among major ecosystems, including Binance and its rivals.
Challenges:
The ecosystem needs to adapt to local requirements if legalized.
Rapid policy changes could lead to temporary legal volatility.
For users on Binance or individual investors, a crypto-friendly South Korea could drive market prices and trading volumes, especially if new policies are implemented effectively and consistently.
Conclusion
While the US has taken historic steps with crypto, South Korea – a high-tech nation with a vibrant digital asset market – also appears unwilling to fall behind.
Mr. Hong Joon-pyo's 'unshackling' crypto statement shows a bold policy mindset that could fundamentally change South Korea's position on the global crypto map. But it all depends on the results of the upcoming election – where the people will decide whether they want a freer crypto future.
Risk warning: Investing in and using cryptocurrencies always carries risks. The content of this article is for informational purposes only and should not be considered investment advice. Users should conduct their own research and exercise caution in all financial decisions. Crypto is not suitable for everyone.