- Both presidential candidates back spot crypto ETFs and relaxed regulations.
- FSC lifts institutional trading ban, allows nonprofits to trade crypto.
- Lee proposes a won-based stablecoin to curb $40.8 billion in outflows.
South Korean citizens can expect to see more crypto growth, since both main presidential candidates in the upcoming snap election stated pro-crypto stances. There are plans to ease the rules on digital assets and allow spot crypto ETFs, which could help the crypto industry in the nation. More than 16 million South Koreans have accounts in the cryptocurrency industry, which is higher than the number of people trading on the stock market.
The Financial Services Commission (FSC) lifted a ban on institutional crypto trading effective June 1, 2025, under new compliance standards. World Vision Korea made history by legally selling 0.55 Ether, the first nonprofit to do so. This move signals a shift toward institutional integration.
Bipartisan Support Fuels Crypto Growth
Lee Jae-myung, the Democratic Party’s leader, has suggested the introduction of a won-based stablecoin to help stop capital fleeing, as Q1 2025 saw 56.8 trillion won ($40.8 billion) in outflows, mainly because of foreign stablecoins. The goal is for Lee to rely less on USDT and USDC, which are both foreign digital assets. He backs efforts to make spot crypto ETFs legal and to decrease transaction charges, making it easier for more people to enter the market.
Kim of the People Power Party agrees with Lee’s ETF idea and wants to see lenient rules in place to expand the use of cryptocurrencies. Both candidates think crypto can be useful in reaching young people and helping solve the problems of youth unemployment. The two parties have come together on a rare point of agreement about digital assets.
By the end of 2025, the FSC intends to have corporate crypto trading up and running, with the first users being educational institutions and nonprofits. All businesses have to use real-name accounts and obey the rules of KYC and AML to fight against money laundering and tax evasion.
Stablecoin and ETF Proposals Gain Traction
Lee started the stablecoin initiative to have more wealth stay within the country and improve financial independence. Laws currently prevent domestic stablecoin issues, so exchanges have to rely on U.S. dollar alternatives. Stablecoins backed by won could have a big influence on the market, though certain economists are worried it might lead to higher inflation or hand control of money to private firms.
Legalizing a spot Bitcoin ETF is a shared priority for them, after Hong Kong made the first move. The market for crypto in South Korea, which has been driven only by retail investors because of past institutional bans, is likely to grow a lot if ETFs are approved. By the end of this year, the FSC will enable 3,500 corporate organizations to purchase crypto through its pilot program.
The upcoming Bitcoin Seoul 2025, happening June 4–6, will again highlight South Korea’s status in international crypto finance. Industry experts will attend the conference to discuss Bitcoin-related matters such as laws, finances, and adoption, making Seoul an important member of the global Bitcoin world.
Regulatory Shifts and Market Dynamics
The victory of U.S. President Donald Trump in the 2024 election was excellent news for crypto funders throughout the globe, and it helped boost the number of South Korean crypto users to 16.29 million by March 2025. Leaders in the industry think the number might climb to 20 million by the end of the year.
In June 2025, the FSC made KYC rules more stringent in preparation for involvement from financial institutions. The removal of KuCoin and MEXC from Apple’s App Store, along with 12 other crypto apps, signaled that the company is strengthening its regulatory restrictions. Even so, crypto is still a top issue in elections, as candidates use its popularity among young people.
In total, authorities disclosed more than $9 million worth of crypto, averaging about $24,000 per person, which includes Bitcoin, Ether, XRP, and Dogecoin.
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