South Korea's Crypto Push: A National Growth Engine?
South Korea's newly elected President Lee Jae-myung has prioritized reviving the nation's economy, focusing on easing financial strain and stimulating growth. While his inaugural speech didn't explicitly mention cryptocurrency, his campaign promises paint a different picture, signaling a potential pro-crypto policy shift.
President Lee's Crypto Vision
President Lee plans to significantly advance South Korea's digital asset strategy. This includes:
- Advancing the Digital Asset Basic Act (DABA).
- Legalizing spot crypto ETFs.
- Enabling the National Pension Service to invest in digital assets.
The Financial Services Commission has already started implementing a phased plan to integrate institutional players into the crypto market.
Economic Stimulus and Bipartisan Support
President Lee has announced a substantial fiscal stimulus exceeding 30 trillion won (approximately $22 billion) to jumpstart the struggling economy. This action addresses lowered growth projections, revised to just 0.8% in May. His nominee for Prime Minister emphasized the urgency of this response. Both Lee and his election rival expressed strong bipartisan support for these initiatives.
Shifting Sentiment
The changing sentiment towards cryptocurrency in South Korea reflects broader political and public opinion. Digital assets have become a central issue in voter priorities. As noted by Sangmin Seo, head of the Kaia DLT Foundation, "This election, Korean politics sees crypto as a narrative to gain voters’ favors, positioning it as another national growth engine besides AI and semiconductors."
Global Influence and US Stance
President Lee's pro-crypto stance might also be influenced by global developments, particularly the United States' increasingly pro-crypto stance. The renewed focus on crypto in the US could encourage similar moves globally, making crypto adoption a strategic decision for both innovation and geopolitical alignment.
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