South Korea’s Democratic Party candidate, Lee Jae-myung, has emerged victorious in the country’s presidential election, garnering 48% of the total votes. Lee’s campaign prominently featured cryptocurrency regulations as a central issue. Recognized as a pro-digital asset candidate, Lee’s balanced perspective on cryptocurrencies has earned him significant support.
Lee’s administration promises to remove the existing prohibition on spot Bitcoin ETFs and to sanction digital currency acquisitions for government-sponsored pension funds. It’s worth noting that Lee isn’t the first politician in South Korea to advocate for cryptocurrencies. Earlier leaders had promised to implement pro-crypto policies but faced numerous obstacles such as political instability and a sluggish South Korean market.
However, the global acceptance of cryptocurrencies has surged, with various countries now adopting crypto at both national and state levels. This shift has led the local digital asset community, including retail investors, to view this election as a significant victory for cryptocurrencies.
Dennis Porter, the founder of Satoshi Action Fund, lauded the election’s outcome as a testament to the public’s approval of the President’s cryptocurrency agenda. Porter, who was in South Korea for the election, hailed Lee’s commitment to allow a portion of South Korea’s $884 billion pension fund to be invested in Bitcoin and other cryptos as a significant win for the global crypto community.
Lee also plans to introduce a South Korean won-backed stablecoin to boost crypto usage in the country and curb capital flight. He aims to modernize the nation’s financial system and prevent capital outflow from depleting the nation’s wealth. Lee’s campaign centered around promoting Bitcoin spot ETFs, currently banned in South Korea.
The election, dubbed “judgment day” against the previous administration, saw a record voter turnout since 1997, with 80% of the nation’s 44.39 million eligible voters participating. With 99% of votes counted, the Democratic Party holds 49.3% of the vote, while the People Power Party holds 41.3%.
Lee, the Democratic Party’s frontrunner, has promised to unite the country post-election while addressing numerous challenges such as economic struggles, trade disputes, regional geopolitical conflicts, and a cost-of-living crisis. Lee has also pledged to bolster the economy by promoting businesses and potentially incorporating cryptocurrency regulations into the economic recovery plan.
With a significant election victory, Lee may have the freedom to implement his pro-crypto policies with minimal opposition. Lee’s commitment to stabilize the economy includes investments in artificial intelligence and national defense technology. He has also expressed his intent to endorse a won-backed stablecoin and allow public pension funds to invest in digital assets as part of a broader strategy to create a secure investment environment, especially for the younger generation.
