This is at risk for crypto in the next election in Korea

South Korea is preparing to elect a new president on June 3rd. And while elections could be more dominated by other issues in South Korean politics, such as the former president’s recent ammo each, candidates position digital assets as a key campaign issue in a country where nearly a third of its citizens own crypto.

Dr. Sangmin Seo, a Korean engineer who leads the Kaia DLT Foundation, believes Crypto is becoming increasingly politically useful.

“In this election, South Korean politics sees Crypto as a story to gain voter favour, positioning it as another national growth engine other than AI and semiconductors,” SEO said. Decryption.

“There is widespread support for the idea that the Korean crypto industry cannot lose its competitiveness at the global stage. Both sides of politics feel the urgency to keep up with regulatory advances in other countries.”

Democratic candidate Lee Jae-myung and People Power Party nomination Kim Moons discovered rare Common Ground Cryptographic ETF support.

However, the two candidates diverge significantly on their Stablecoin policy.

Lee is supporting the winning stubcoin to keep capital flights, or money off the coast, citing about $40.8 billion of leaks from South Korean exchanges in the first quarter.

This country needs it “to ensure that its citizens’ wealth does not leak overseas.” He said during a policy discussion earlier this month.

As a frontrunner, Lee plans to create a surveillance system, reduce transaction costs and provide regulatory access to cryptos to investors.

Meanwhile, Kim is trying to dismantle one bank rule, one exchange, to facilitate banking restrictions for crypto companies. he Plans to cut taxes It enables a transparent crypto market and enables crypto-related funds to be run for the country’s growing middle class.

However, for these crypto ETFs to enter, regulators must work with parties and their positions on digital assets.

Last week, the National Financial Services Commission (FSC) Released details Among the discussions on May 1, nonprofits and crypto exchanges will be able to sell digital assets from June.

The same week, the Democratic Party of Korea Release Digital Assets Committee to establish comprehensive regulations.

Decryption The parties were contacted for comments on their respective crypto policy positions.

Learn from the past

The consensus between the two major parties suggests that the country’s crypto and digital asset regulations can be relaxed immediately. To the Kwon and Terra’s collapsethe algorithm Stablecoin.

In addition to the impact on consumers, the collapse of Terra has led to the Korean crypto industry as “According to SEO, it has been accused of one of the darkest markets, and some people call it gambling.

Coupled with several other well-known scandals, including those involving politicians’ trading activities, governance in the industry is a priority.

“Currently, lawmakers are communicating with industry experts who have studied first initiators such as the EU, Singapore, the US and the UAE to create the most applicable regulatory framework for the Korean market, including consumer protection measures,” SEO added.

ETFS

The candidate has also expressed interest in launching crypto ETFs in Korea, but the topic has been raised many times by politicians since the US launched spot Bitcoin ETFs, with little concrete advancement in adoption.

“(The) first step should start by determining which parties can operate the Spot ETF, including custody,” said Ryan Yoon, a senior analyst at Tiger Research, a web3 market analytics company with expertise in the Asian market. Decryption.

“The classification of investors depends on their risk tolerance, but I think ETFs are open to everyone,” Yoon pointed out.

KP Jang, Chief Strategy Officer of Seoul-based data intelligence platform Xangle, said Decryption This is likely to happen, but there are certain conditions.

“The stubcoins that have been won are likely to circulate primarily within South Korea,” said Chang.

Given the ways in which Koreans are not used elsewhere as “settlement currency,” these are likely “relatively few,” although they tend to cause global market shocks like the Terra Luna incident.

The proposed winning stubcoin will be issued as a “fully collaborative model,” Jang noted, adding that “actual South Korea’s victory reserves” will be “fully retained against the amount issued.”

This clarity of collateral significantly improves stability and “reduces the possibility of collapse like past cryptographic algorithm models,” he said.

Tiger Research’s Yun reflects this and says that there is no chance of repeated failures.

Yet, Yoon said there is no “official discussions and regulations to protect ridiculous users.” Genius act It could act as a “potential reference.”

Edited by Sebastian Sinclair