The Outlook on the Crypto Assets Policy of South Korea's New President Lee Jae-myung

Lee Jae-myung was elected as the 21st President of South Korea with a high voting rate of 49.42%, setting a record for the highest votes in previous elections. Notably, in this election, monetary policy regarding Crypto Assets became a hot topic for the first time, with candidates making positive commitments to attract young voters.

Lee Jae-myung listed virtual assets as an important component of the "fair economy" in his policy agenda. He pledged to work towards making South Korea a "digital asset hub" after taking office, laying the foundation for the development of the virtual asset industry.

Back in the 2022 campaign, Lee Jae-myung showed a positive attitude towards Crypto Assets. He was the first presidential candidate in the world to raise campaign funds by issuing NFTs. Lee Jae-myung once stated: "If we cannot avoid the cryptocurrency market, we must seize the opportunity."

Lee Jae-myung proposed a series of policy initiatives to support the development of the Crypto Assets industry:

1. Promote the development of spot ETFs and stablecoins. He promised to institutionalize virtual asset spot ETFs and establish an integrated regulatory system. At the same time, support the issuance of Korean won-pegged stablecoins to reduce capital outflow.

2. Expand institutional investment. Lee Jae-myung proposed allowing government agencies such as the national pension fund to invest in Crypto Assets after meeting stability standards.

3. Relax the regulation of exchanges. He plans to establish a comprehensive monitoring system to oversee major trading platforms, guided by the government to reduce market trading costs. At the same time, he hinted at possibly relaxing the "1 exchange - 1 bank" rule.

4. Adjust the tax policy. The Democratic Party proposes to gradually implement a tax on Crypto Assets transactions, but will significantly increase the tax-exempt amount from 2.5 million won to 50 million won to reduce the tax burden on ordinary investors.

5. Support for ICOs and STOs. Lee Jae-myung stated that he will consider allowing initial coin offerings (ICO) and security token offerings (STO) after taking sufficient protective measures.

6. Formulate the "Basic Law on Digital Assets." The Digital Assets Committee established by the Democratic Party plans to create a legal framework for Crypto Assets and stablecoins.

Lee Jae-myung's victory indicates that South Korea may see a significant shift in its Crypto Assets policy. From institutional development to capital market integration, his "new crypto policy" outlines a blueprint to transform South Korea into a "digital asset center." Against the backdrop of tightening global crypto regulation, it is worth noting whether South Korea can achieve this goal.