South Korean presidential candidates are making Bitcoin ETF approvals a central campaign promise

The presidential candidates in South Korea are promising to approve Bitcoin ETFs as they vie for the support of the country’s cryptocurrency voting bloc ahead of the June 3 election.

As reported by Point Daily, researchers have found that the 16 million crypto investors in South Korea make up almost 36% of the 44.25 million eligible voters.

The candidates have been forced to integrate crypto policy into their platforms due to how widely used cryptocurrencies are in South Korea. The market value of bitcoin is greater than 2,600 trillion won, which is the same as 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 saw him make his first mention of cryptocurrency policy during the campaign. Lee framed his crypto-friendly proposals in terms of providing better investment opportunities for Korea’s youth.

“I will create a safe investment environment so that young people can [build] assets and plan for the future,” stated Lee, according to The Korea Economic Daily.

Lee’s Democratic Party is currently leading in the polls with 42% support, based on a survey by Korea’s National Barometer Survey between April 24 and 30. Acting president Han Duck-soo trails with just 13% support.

Moreover, with both major parties now actively courting crypto voters, Bitcoin ETF approval has surfaced as a common promise in their respective platforms.

The candidates are also vowing to change the regulatory environment for cryptocurrency in South Korea, which includes a number of restrictions. Perhaps the most controversial policy is the “one-exchange-one-bank” policy, which 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. It also plans to institutionalize corporate virtual asset trading, which would allow corporations to deal more directly with the cryptocurrency market.

Lee Jae-myung’s proposals include lower transaction fees and stronger consumer protections. His announcement contained limited information on when these changes will take place.

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. This regulatory alignment would likely trigger institutional investment in cryptocurrencies in South Korea.

Crypto ETFs are becoming increasingly popular in the United States. According to recent rumors, Binance founder CZ was reportedly involved in the Binance Coin ETF filing.

In one of the recent filings, Bitwise applied for a NEAR ETF with the U.S. SEC. This filing follows a pattern of surges in altcoin ETF applications.