Veteran capital in crypto is shaping South Korea’s elections
Cryptocurrency has emerged as a defining issue in South Korea’s snap presidential election, with candidates vying for support from a growing base of digital asset investors across generations.
All three front-runners have rolled out crypto-friendly proposals. These include the legalization of spot Bitcoin (BTC) exchange-traded funds (ETFs) and the easing of banking rules that currently restrict fiat-to-crypto trading to just five platforms.
The June 3 vote is slated to come around two years early, triggered by the impeachment of former president Yoon Suk-yeol after his controversial declaration of martial law in late 2024. Though quickly overturned by lawmakers, the abrupt power grab led to a political crisis and his eventual removal from office.
Yoon’s 2022 campaign leaned heavily on promises to reform crypto regulations — largely aimed at younger voters. This time, the political focus on digital assets has only intensified, as older generations begin to pour significant wealth into digital assets.
Presidential election debate clash on stablecoins
This election has three leading candidates, and all of them have promised to advance the local crypto economy.
Lee Jae-myung of the opposing Democratic Party lost to Yoon in the last election and returns with a second crypto-friendly campaign.
Kim Moon-soo is running under the current ruling party, the People Power Party (PPP). Former president Yoon has distanced himself from the PPP ahead of the election, leaving Kim to define a new direction for the fractured conservative base.
Lee Jun-seok was once the youngest-ever leader of the PPP. He is now leading his own newly formed Reform Party, a minor party he founded in January 2024 after splitting with the ruling bloc.
“The political sphere has actively embraced [cryptocurrencies] as a key campaign agenda,” Park Sung-jun, head of the Blockchain Research Center at Dongguk University, told Cointelegraph.
“Driven by the transition to a digital economy, the push for transparency in political funding, the spread of blockchain-based political participation technologies and growing demands for investor protection, [crypto] has emerged as a significant economic, social and political issue in South Korea.”
Lee Jae-myung and Kim have both pledged to ease strict banking rules that require crypto exchanges to partner with licensed banks to offer fiat services — a system that has created a near-monopoly of just five approved platforms. The structure in place excludes corporate participation, as it requires users to open accounts at partner banks using their legal identities.
Lee has also proposed launching a stablecoin pegged to the won to reduce reliance on tokens issued abroad.
Related: South Korean crypto emerges from failed coup into crackdown season
Lee Jun-seok pushed back, noting that South Korea once had a won-pegged algorithmic stablecoin, TerraKRW (KRT), part of the Terra ecosystem that suffered a multibillion-dollar collapse.
“Lee Jae-myung proposes launching another stablecoin without presenting any safeguards. What assets will back it? How will market risks be handled? How will we avoid repeating past failures? There are no answers,” Lee Jun-seok said in a Facebook post, criticizing his opponent for turning stablecoins into a “slogan.”
The two candidates clashed again on stablecoins during a live debate, where Lee Jae-myung argued for the safety of centralized and fiat-backed stablecoins.
Lee Jae-myung was Yoon’s opponent in the 2022 election when he also championed crypto-friendly policies. However, he was less aggressive than Yoon, who made several pro-crypto pledges. Some of them, like lifting bans on play-to-earn (P2E) gaming and initial coin offerings, were never implemented.
Lee Jun-seok reportedly called gaming South Korea’s “second semiconductor industry,” which made up more than a fifth of the country’s total exports in 2024. He pledged to target 10% of the global gaming market through regulatory support in taxation, exports and talent development. He added that regulations that dismiss blockchain-based P2E games accelerate the exodus of creative industries.
P2E games remain banned under local regulations, but interest has recently surged among investors following the launch of a new title by Nexon, one of South Korea’s biggest game developers, along with a new cryptocurrency tied to its in-game economy.
Crypto promises test old and new voter bases
South Korea had 9.7 million Know Your Customer-verified crypto investors by the end of 2024, a 25% increase from the first half of the year, according to the Financial Intelligence Unit (FIU). Investors in their 30s saw the biggest growth, up 29%, followed by those in their 40s (27%), while investors over 50 increased by 25%.
The FIU’s findings show that older investors have larger holdings. By year-end, 221,000 investors held at least 100 million won (about $73,000) in crypto. Of those, 172,500 — or 78% — were over 40.
Related: XRP and Solana race toward the next crypto ETF approval
In February, the head of the financial industry association urged regulators to approve Bitcoin and Ether ETFs, citing rising demand among older investors. He argued that ETFs offer safer exposure than direct investment.
The approval of Bitcoin ETFs has been a key campaign pledge for both Lee Jae-myung and Kim. The move follows growing global momentum after the US, the world’s largest market and a key South Korean trading partner, gave the green light to spot Bitcoin ETFs in early 2024.
“Cryptocurrencies play a certain role in our society, but they are ultimately one of the global trends. As the US took the lead, we’ve ended up following in its footsteps. It’s a bit disappointing — we could have taken the lead ourselves,” Cho Jaewoo, assistant professor of social science at Hansung University, told Cointelegraph.
However, the nation’s Capital Markets Act is a barrier that does not recognize crypto as eligible assets underlying ETFs. The Financial Services Commission (FSC) is also reviewing legal pathways to allow Bitcoin ETFs under its dedicated crypto committee.
Lee ahead in presidential election voter survey
Yoon’s failed coup accelerated the presidential election and brought renewed urgency to unresolved issues in the local crypto industry.
“In the 2022 presidential election, cryptocurrency was viewed as speculative and untrustworthy. But by the 2025 election, it had emerged as a key policy issue, with major candidates pushing for institutionalization and financial productization in response to the investment realities faced by young people,” Park from Blockchain Research Center said.
South Korea is one of the world’s largest crypto markets. In Q1 2024, the Korean won ranked as the most-traded fiat currency against crypto, driven largely by retail investors. Institutional players remain on the sidelines, awaiting their turn as the FSC prepares to launch pilot trading for professional investors.
Crypto policies were once seen as campaign strategies to sway younger voters, but this year, they’re seen as an economic and social issue that impacts multiple generations. In this election, older generations are entering the digital sphere, accelerating calls for regulated investment vehicles, such as ETFs.
“Things have changed a lot. There were even questions and answers about virtual assets during the presidential debates, and related discussions seem to be much more active. In the past, people looked at it with skepticism, but now it feels like the public is approaching it more neutrally and making their own judgments,” Cho said.
Lee Jae-myung and Kim are the two leading candidates, according to local media surveys, with Lee leading Kim at 44.9% to 35.9%, according to a survey conducted from May 23 to 25. Lee Jun-seok is far behind at 9.6%, though he gained almost 3% from the preliminary survey conducted a week prior.
The 21st presidential election is scheduled to take place on June 3.
Magazine: Crypto scam hub expose stunt goes viral, Kakao detects 70K scam apps: Asia Express
Bilal Bin Saqib, head of Pakistan’s crypto council, announced on May 28 that the country is moving to establish a strategic Bitcoin reserve.
Speaking at the Bitcoin 2025 conference in Las Vegas, Nevada, Saqib said the government of Pakistan followed the United States’ lead in establishing a Bitcoin strategic reserve and is embracing pro-crypto regulatory policies. The government official told the audience:
“Today is a very historic day. Today, I announce the Pakistani government is setting up its own government-led Bitcoin Strategic Reserve, and we want to thank the United States of America again because we were inspired by them.”
The announcement represents a significant departure from the government of Pakistan’s previous stance on cryptocurrencies, holding that crypto would never be legal in the country.
Pakistan’s shift reflects the broader trend of nation-states adopting pro-crypto policies following the regulatory shift in Washington, DC under the President Donald Trump administration.
Related: Pakistan appoints special assistant to PM on blockchain and crypto
United States Vice President JD Vance took the stage to deliver a keynote address at the Bitcoin 2025 conference in Las Vegas, Nevada, encouraging Bitcoiners to deepen their involvement in politics.
Vance highlighted the strategic and geopolitical importance of Bitcoin, emphasizing that the US should maintain leadership in the crypto industry to remain competitive in the age of digital finance. Vance told the audience:
“What happens in the world of politics, what happens in the world of bureaucracy, will affect even the most transformational and valuable technologies if we do not make the right decisions. The first thing that I would ask you, is to take the momentum of your political involvement in 2024 and carry it forward to 2026 and beyond.”
“Don’t ignore politics because I guarantee you, my friends, politics is not going to ignore this community, not now, and not in the future,” the vice president continued.
Bitcoin continues to gain institutional legitimacy and has been elevated to an asset class with macroeconomic and geopolitical importance. Market analysts and Bitcoin advocates warn that the global race to acquire BTC is underway between sovereign powers.
Related: Crypto czar Sacks says US could possibly ‘acquire more Bitcoin’
Nation-state Bitcoin adoption
Bitcoin maximalists and market analysts argue that high-stakes game theory compels nation-states to adopt BTC due to the downside or opportunity cost of not adopting the scarce digital asset as sovereign competitors do.
This alleged nation-state’s fear of missing out (FOMO) was amplified by US President Donald Trump’s pro-crypto stance, including the creation of a Bitcoin strategic reserve and a crypto advisory council.
The regulatory shift in the United States prompted other governments to indicate a possible policy reset on cryptocurrencies and Bitcoin.
The government of India, for instance, is reconsidering its crypto policies in response to regulatory changes in the US. India’s economic affairs secretary, Ajay Seth, said that digital assets do not care about borders.
Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee
Opinion by: Scott Buchanan, chief operating officer of Bitcoin Depot
A new proposal to install Bitcoin ATMs in federal buildings highlights an important question: Can crypto truly go mainstream without a stronger physical presence? For years, the industry has focused on software and decentralization, but its reluctance to invest in real-world infrastructure is starting to show. Without physical access points, crypto risks becoming an exclusive, insiders-only system, rather than the open alternative it sets out to be.
Everyone loves to talk about decentralization. There’s a good reason behind this. It defines the movement, shapes the technology, and supports the vision of a better financial system. While the industry focuses on code and algorithms, it lacks something basic. A decentralized system that exists only online is not genuinely decentralized.
Physical infrastructure is the missing link
Bitcoin’s physical infrastructure is the missing link. Without tools like ATMs, kiosks and access points at traditional retail locations, crypto remains out of reach for millions. Decentralization is not just about removing intermediaries. True decentralization requires expanding access. Without real-world touchpoints, even the most advanced network becomes limited to a closed circle of insiders.
Recent: Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs
For crypto to become mainstream, it must be easy to reach digitally and physically. That means showing up in places people already go and seamlessly integrating into people’s lives. Many groups in the American population still rely on cash or don’t have access to traditional banks. According to the latest Federal Deposit Insurance Corporation report, around 5.6 million American households don’t have a bank or savings account. Bitcoin ATMs give these users access without needing an app, a bank account or a crash course in blockchain. Most crypto tools today assume a level of financial fluency and infrastructure that millions simply do not have. The result is a digital-only ecosystem that locks out newcomers and widens the divide between early adopters and everyone else.
User-friendly screen in the right place
Physical infrastructure helps address this issue. A Bitcoin ATM in a grocery store or gas station is not just a convenience but a bridge to financial inclusion. It is an invitation to someone who has never bought crypto, telling them they can participate. No bank, no broker, just a user-friendly screen in a familiar place.
These machines also generate new economic activity. Local businesses benefit from increased foot traffic as the kiosks create passive revenue. For many communities, they provide access to a parallel financial system that was previously out of reach. This is a tangible example of crypto’s real-world utility. It is already happening, and it is measurable.
The crypto industry’s blind spot
The industry often treats physical infrastructure like an afterthought. The obsession with building new digital solutions has created a blind spot. Innovation without usability builds systems that serve the few but exclude the many. If someone can buy Bitcoin (BTC) at the same place they buy their morning coffee, that is when crypto stops feeling like an obscure digital asset and starts becoming part of everyday life.
As governments increase regulation, trusted and transparent interfaces will become more important. When operated within regulatory frameworks, Bitcoin ATMs offer a way to provide access between traditional finance and digital assets. They are familiar, easy to monitor and offer a more approachable entry point for the general public.
Like any financial tool, Bitcoin ATMs have drawn scrutiny, particularly in cases where bad actors use them. Rather than dismissing the machines themselves, we should focus on investing in better oversight, stronger consumer education and smarter regulation. The overwhelming majority of people who use Bitcoin ATMs do so for legitimate reasons: to send remittances, to move money securely or to access digital assets without traditional banking barriers. Building trust does not mean avoiding or dismantling physical access, but improving it.
The first time someone uses Bitcoin should not involve reading a white paper or navigating a tutorial. It should be as familiar as using an ATM or tapping a payment terminal. This is not an argument against innovation. Software and protocols will continue to evolve and play an important role. Physical infrastructure provides something those tools cannot: trust through presence. When people can see and use crypto in their neighborhood, at a store they already visit or in a format they already understand, it changes how they think about crypto and who it is for.
According to Coin ATM Radar, there are over 30,000 Bitcoin ATMs in the US. It’s a meaningful start, but still only a small step toward widespread access.
Crypto’s long-term success will depend not just on innovation but also on inclusion. That means building more than networks; it means building presence. When people can interact with crypto in the physical world, it stops being abstract and becomes usable. That is how digital finance becomes everyday finance.
Opinion by: Scott Buchanan, chief operating officer of Bitcoin Depot.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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