The presidential election in South Korea on June 3 has significant implications not only for the country but for the global crypto market. South Korea ranks as the third-largest crypto market worldwide, and the election results will affect the future of the crypto industry.
Crypto Market in South Korea
South Korea is the third largest crypto market globally, following the US and China, with daily trading volumes of about $5.4 billion and 9.7 million active users. The country is also interested not only in Bitcoin and Ethereum but in altcoins, which makes it an important indicator for global projects.
Expected Changes Post-Election
The new administration is expected to accelerate the implementation of a crypto tax set to take effect in 2025, likely causing trading volumes to decline. Simultaneously, all major candidates support the introduction of Bitcoin ETFs, increasing the likelihood of their quick approval.
Long-term Prospects and Legislative Changes
The elections may affect regulatory models like the 'one exchange – one bank' approach, which is being debated in the context of anti-money laundering efforts. Additionally, the proposal for a KRW-backed stablecoin is gaining traction amid rising demand for such instruments.
Leading presidential candidates in South Korea are raising crucial questions regarding cryptocurrencies and their regulation. The expected changes could have significant consequences for both local and international traders and investors.
