Here's What's at Stake for Crypto in South Korea's Upcoming Election
South Korea will hold a presidential election on June 3, with digital assets emerging as a key campaign issue amid the backdrop of the previous president's impeachment. Approximately one-third of South Koreans own cryptocurrency, prompting candidates to leverage crypto to attract voters. Democratic Party candidate Lee Jae-myung and People Power Party nominee Kim Moon-soo both support crypto ETFs but differ on stablecoin policies. Lee advocates for won-backed stablecoins to prevent capital flight, while Kim aims to ease banking restrictions for crypto firms. The Financial Services Commission plans to allow non-profits and exchanges to sell digital assets starting in June. Both parties are working towards comprehensive regulations, acknowledging the need for consumer protection following the collapse of Terra. Proposed won-backed stablecoins would be fully collateralized, enhancing stability and reducing risks of failure. However, South Korea currently lacks official regulations to protect stablecoin users.
