Lee Jae-Myung, the Democratic Party of Korea presidential candidate, has pledged to introduce a virtual asset spot exchange-traded fund (ETF) and introduce crypto reforms in the country.

Democratic Party of Korea presidential candidate Lee Jae-Myung has pledged to introduce a virtual asset spot exchange-traded fund (ETF) and crypto reforms in the country if elected.

“I will create a safe investment environment so that young people can form assets and plan for the future,” said Lee Jae-Myung. In line with ‘7 major digital asset pledges,’ he promised to institutionalize virtual asset spot ETFs and build an integrated monitoring system. He also proposed a policy to reorganize the market under government leadership, saying, “I will induce a reduction in transaction fees.”

This is the first time that a candidate has mentioned virtual assets in a presidential election pledge, according to 6 May 2025 reports. Notably, Lee Jae-Myung’s pledge is interpreted as an intention to bring virtual assets into the institutional system and increase safety.

Earlier this month, ruling People Power Party presidential candidate, Ha Tae-Young unveiled a sweeping set of crypto reforms, including the approval of spot cryptocurrency ETFs and a revamp of the nation’s digital asset framework. A centerpiece of the PPP’s pledge is the legalization of spot crypto ETFs, a move aimed at aligning South Korea with global financial markets.

Citing the US Securities and Exchange Commission’s decision in January to approve spot Bitcoin ETFs, lawmaker Park Soo-min highlighted the urgency of keeping pace with international regulatory developments.

Huge news for #crypto in South Korea!

🇰🇷 Presidential front-runner Lee Jae-myung pledges to greenlight spot #Bitcoin ETFs if elected.

Get ready for a new era of secure, accessible trading on platforms like @XBITDEX! 🪙 pic.twitter.com/gGkpRKngR7

— XBIT (@XBITDEX) May 7, 2025

The candidate added that he will introduce a virtual asset governance committee to monitor and respond to issues arising in the process and establish an integrated monitoring system to prevent and respond to potential risks such as market manipulation and money laundering.

Moreover, Lee Jae-Myung's pledge also includes a plan to reorganize the virtual asset market by reducing transaction fees and introducing a code of conduct for healthy competition among virtual asset service providers.

The Democratic Party presidential candidate's pledge is expected to be a hot topic in the upcoming presidential election. It could also influence the government's policy on virtual assets in the future.

In other news, crypto trading has surged, exceeding the South Korean stock market activity, where digital assets reached a market capitalization of over 100 trillion won ($74.8 billion).

Meanwhile, global political shifts such as the election of Donald Trump as President of the US have influenced a fivefold increase in trading volume.

The country has delayed the 20% capital gains tax on crypto till 2027, citing enforcement challenges. The government is cracking down on market manipulation by forcing crypto companies to comply with the Virtual Asset User Protection Act (VAUPA), which mandates stricter oversight of digital assets.

Despite regulatory scrutiny, South Korea remains one of the world’s most active crypto markets today. Altcoins such as XRP are especially popular in the region, showcasing South Korea’s preference for a fast and cost-effective transaction solution.