Numbers that impress
As of the end of May 2025, South Korean investors hold over $74.5 billion in cryptocurrencies. This is comparable to the turnover of the largest exchanges in the country.
According to local media, more than 18 million people - almost a third of the population - actively trade digital assets. This is not just a market. It's part of everyday life.
Pension fund and spot ETFs
Candidates in the presidential election compete for the title of the most cryptocurrency-friendly politician. One proposes to invest the state pension fund ($884 billion) in cryptocurrency.
Another promises to legalize spot ETFs for Bitcoin and Ethereum. The market is thrilled. Such consensus in South Korean politics has not been seen for a long time.
Confrontation over stablecoins
However, the ideas for launching a stablecoin pegged to the won faced resistance. The Bank of Korea fears that such assets issued by private companies will undermine control over monetary policy.
And this is despite the fact that over 56 trillion won was withdrawn in the first three months of 2025, half of it through USDT and $USDC . For the government, this is already a matter of economic security.
Amid pressure from the United States
Washington promotes dollar stablecoins as a tool for global influence. Donald Trump, back in the spotlight, claims that stablecoins are the US's weapon in the fight for financial leadership.
South Korea is responding. Quickly and aggressively.
User protection law and strict oversight
From July 2024, the Virtual Asset User Protection Act will be in effect in the country. It requires exchanges to:
Insure reserves
Compensate users for losses in case of hacking
Implement strict security standards
And all this is against the backdrop of the TerraUSD trauma, a $40 billion crash, and the flight of Do Kwon. Regulators have decided not to take risks anymore.
South Korea is not just a market participant but one of the leaders
The stakes are high. Authorities balance between innovation and risks. But it is already clear: South Korea is preparing to become one of the most advanced crypto-states. And in this race, crypto has already won, regardless of who wins the election.
