South Korean Presidential Candidates Eye 16M Crypto Votes with Bitcoin ETF Promises

South Korean presidential candidates are making Bitcoin ETF approvals a central campaign promise as they compete for the support of the country’s substantial cryptocurrency voting bloc ahead of the June 3 election. Democratic Party leader Lee Jae-myung announced on May 6 his commitment to legalizing spot crypto ETFs, alongside promises to lower transaction fees and enhance consumer protections.

Candidates eye 16m crypto vote bank with Bitcoin ETF promises

The race to secure support from South Korea’s massive cryptocurrency voting bloc has intensified as presidential candidates recognize the electoral power of the country’s 16 million crypto investors. As per research published by Point Daily, these investors make up almost 36% of the 44.25 million eligible voters in South Korea.

Because of how widely used cryptocurrencies are in South Korea, crypto policy has become a key campaign issue. In Korea, the market value of bitcoin has surpassed 2,600 trillion won. It is currently on par with the total worth of all businesses included in the Korea Composite Stock Price Index (KOSPI).

The ruling People Power Party has shared seven major crypto-related initiatives on its platform. These include eliminating the one-exchange-one-bank arrangement, making it official for corporations to trade virtual assets, allowing spot trading of Bitcoin ETFs within the year, and making South Korea a global center for virtual assets.

Democratic Party leader Lee Jae-myung’s May 6 announcement marked his first mention of cryptocurrency policy during the campaign. Lee framed his crypto-friendly proposals as part of a plan to provide better investment opportunities for Korea’s youth. He stated, “I will create a safe investment environment so that young people can [build] assets and plan for the future,” according to The Korea Economic Daily.

Lee’s Democratic Party currently leads in the polls with 42% support, based on a survey conducted by Korea’s National Barometer Survey between April 24 and 30. The acting president, Han Duck-soo, trails with just 13% support. In addition, with both major parties now actively courting crypto voters, Bitcoin ETF approval has surfaced as a common promise in their respective platforms.

Candidates promise crypto reforms to get votes

South Korea’s existing regulatory environment for cryptocurrency includes a number of restrictions that both of the top contenders are now vowing to alter. Perhaps the most controversial policy is the “one-exchange-one-bank” policy. This policy restricts cryptocurrency exchanges from relying on a single bank for real-name verification services. The policy has been criticized for inhibiting market competition and restricting user choice.

The People Power Party has also pledged to eliminate this regulation as part of its seven flagship crypto initiatives. Institutionalizing corporate virtual asset trading is also on its agenda. This would allow corporations to deal more directly with the cryptocurrency market.

Lee Jae-myung’s proposals cover spot Bitcoin ETFs, lower transaction fees, and implement stronger consumer protections. His announcement contained limited information on when things will commence.

Commitments by both sides to the approval of spot Bitcoin ETFs would align South Korea with other major economies like the United States, which approved spot Bitcoin ETFs. In addition, this regulatory alignment would most likely trigger institutional investment in cryptocurrencies in South Korea. Crypto ETFs are becoming extremely popular in the United States. As per a recent rumor, Binance founder CZ was reportedly involved in the Binance Coin ETF filing.

In one of the recent filings, Bitwise also filed for a NEAR ETF with the US SEC. This has been a common pattern with the surge in altcoin ETF filings.