South Korea’s newly elected President Lee Jae-myung is moving quickly to implement ambitious crypto reforms, focusing on legitimizing cryptocurrency investment and strengthening regulatory frameworks. His administration’s top crypto priorities include:
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Legalizing spot-based crypto ETFs
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Launching KRW-pegged stablecoins
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Institutionalizing security token offerings (STOs)
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Reducing crypto exchange fees
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Creating a Digital Asset Authority
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Allowing multi-bank integrations for exchanges
These measures aim to transition Korea from a retail-heavy crypto market into a regulated hub for institutional and global investment.
ETF and Stablecoin Policy at the Core
Lee’s pledge to introduce spot crypto ETFs—currently banned under Korean law—could unlock safer and more accessible crypto investment options, especially for younger generations. His team also advocates for KRW-based stablecoins to reduce Korea’s dependence on USD-backed alternatives. A proposed framework includes full reserve backing, capital thresholds, and FSC oversight.
Building New Institutions
The administration plans to launch a Digital Asset Authority, separate from existing financial regulators, to manage the evolving crypto ecosystem. A national crypto exchange, co-managed by public and private partners, is also in the works to boost regional economies and create jobs.
Industry Reactions: Hopeful but Cautious
The crypto industry welcomes the pro-growth direction but warns that execution is key. Past administrations have promised similar changes without follow-through. Experts stress the need for coordination with existing institutions like the FSC, FSS, and Bank of Korea to avoid friction.
Korea’s crypto future now hinges on whether the Lee administration can turn bold promises into practical, sustainable reforms.
