South Korea’s top presidential candidates are showing support for the legalization of spot Bitcoin exchange-traded funds (ETFs), following in the footsteps of Hong Kong. The candidates, including Lee Jae-myung, Kim Moon-soo, and Lee Jun-seok, have expressed pro-crypto positions, with promises to allow institutional investment and ETFs. Despite this, industry observers remain cautious about immediate regulatory changes. Currently, Bitcoin ETFs and institutional crypto investments are prohibited in South Korea, leading to all trading volume coming from retail investors. While the candidates’ promises signal a positive shift in digital asset legislation, experts are skeptical due to historical delays in similar promises. Anndy Lian, an author and blockchain adviser, highlighted the need for various factors to align for the success of ETFs. The People Power Party, previously elected in 2022, failed to act on lifting the crypto ETF ban before President Yoon’s impeachment. In contrast, Hong Kong recently launched Bitcoin and Ether-based ETFs, but faced disappointing trading activity compared to the US. The global trend towards crypto ETFs indicates potential regulatory openness in South Korea, aligning with countries like the US. A pro-crypto president could drive reform, but the actual performance of ETFs will depend on multiple factors. Stay tuned for updates on the evolving cryptocurrency landscape in South Korea.
