With approximately 16 million cryptocurrency investors, or eligible voters constituting 36% of the total population, South Korea’s presidential candidates are seeking the crypto community’s support prior to the upcoming election in June. As outlined in a report from Point Daily, the crypto voter demographic has become politically salient.
Political Significance of Crypto Voters
The growing politically strategic importance of Bitcoin holders in South Korea is highlighted by certain statistics. The market capitalization of Bitcoin in Korea is said to surpass 2,600 trillion won. The valuation has reportedly outstripped the aggregate value of the companies listed on the KOSPI stock exchange. As Point Daily indicates, these 16 million investors comprise a notable portion of South Korea’s 44.25 million eligible voters counted during the last general election, which makes these investors politically useful.
Strategies Involving Major Parties’ Crypto
In South Korea, major political parties are said to have specific strategies centered around crypto for appealing to a growing voter bloc with these investors. These strategies include formulating particular positions for the regulation of cryptocurrencies and initiatives directed toward the digital asset industry.
Democratic Party Initiatives
Prof. Kim Yong-jin, a token securities specialist from Sogang University, is said to have joined the campaign team of the Democratic Party as they integrate digital asset specialists into their political campaigns. Additionally, his party colleague, Representative Min Byeong-deok, is said to have introduced a draft Basic Digital Asset Bill. The legislation reportedly aims to create a stablecoin tethered to fiat currency, highlighting the party’s intention to focus on tailor-made policies intended to capture the stablecoin market.
People Power Party Initiatives
The People Power Party, which seemingly confirmed its candidate on June 3, has made known seven major initiatives, out of which some are crypto-related and will be put forward during the campaigns. Reports suggest that women’s empowerment includes lifts on the one exchange, one bank rule, which limited the access to one account for the entire organization, one of the gateways for crypto exchanges to the banking domain. Corporate virtual asset trading and direct engagement are also proposed by the party.
Involving traditional investors, another initiative focuses on permitting spot ETF trading within the year. This move would further enable Koreans to access international financial markets. Moreover, the party wishes to position South Korea as a global virtual asset hub, which indicates aspirations of leading the world in digital assets.
Addresses Frustration among Investors
An individual from the People Power Party has addressed the frustrations of virtual asset market investors. On this matter, Kim Moon-soo offered his insights, noting that approximately 16 million, which means roughly one-third of the population, engage with the virtual asset market. But he stressed a gap in the level of protection that is offered to the investors, commenting that virtual asset investors are left unprotected with minimum safeguards in place. His remarks recognize a high participation rate in the market while pointing to an absence of adequate protections under existing laws.
FSC Announcement on Sale of Assets
Separately, Joseilbo covered an announcement from the Financial Services Commission (FSC) that has a bearing on the market. Per the announcement, starting in June, non-profit bodies and virtual asset exchanges shall be allowed to offload their virtual assets.
The permission is said to rest upon these organizations creating audit and oversight processes as well as enhancing their anti-money laundering policies, indicating a shift towards controlled sales under set compliance requirements. The active courting of crypto investors by major political parties and the proposal of specific digital asset initiatives underscore the growing influence of this demographic in South Korean politics ahead of the upcoming election.
