The recent crypto policy in South Korea can essentially be described as a high-difficulty tightrope act of "regulating firmly while allowing flexibility." The success or failure of this initiative directly relates to the reshaping of the East Asian crypto market, but can it unify the landscape? Not just yet!

You see, the "Basic Law on Digital Assets" that South Korea is implementing is fundamentally based on copying Japan's homework with some added local elements. They want to learn from Japan's meticulous management while aiming to be more open than Singapore. For instance, empowering industry self-regulatory organizations is far more flexible than Hong Kong's rigid approval system. But here lies the problem: being too strict may scare companies away, while being too lenient might lead to a repeat of the LUNA collapse tragedy.

The most aggressive move is allowing the national pension fund to invest in cryptocurrencies. Just think about it, if even the national team is getting involved, how can those institutional investors who have been on the sidelines still remain passive? Pensions in Japan and Australia are probably watching closely; once South Korea starts reaping benefits, a follow-the-leader rush is sure to follow.