South Korea’s Han Pushes for Bitcoin ETF and Crypto Freedom

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March 10, 2025

South Korea’s Han Pushes for Bitcoin ETF and Crypto Freedom

South Korea has been a significant player in the cryptocurrency space, with a large number of crypto users and exchanges like Upbit and Bithumb dominating trading volumes, per CoinMarketCap. However, its regulatory approach has been cautious, with the Virtual Asset User Protection Act passed in 2023, requiring exchanges to meet strict standards, per Reuters. This has created a tension between fostering innovation and ensuring investor protection, with some calling for stricter controls and others for more openness.

Bitcoin ETF approval in South Korea would mean allowing financial institutions to offer a spot Bitcoin ETF, enabling investors to gain exposure to Bitcoin through traditional stock exchanges without directly holding the asset. This is significant, given the U.S. approval in 2024, per Bloomberg, which saw billions in inflows. South Korea, however, has not yet approved such a product, making Han’s call a potential game-changer.

Crypto deregulation, in Han’s context, likely means reducing regulatory burdens on crypto businesses, such as easing licensing requirements, lowering tax rates on crypto gains, or relaxing anti-money laundering (AML) reporting, per CoinTelegraph. This aligns with his party’s progressive economic policies, aiming to attract talent and capital to South Korea’s blockchain sector.

Han’s Political Standing and Motivation

Han, assumed to be from the Democratic Party, is likely positioning himself as a pro-tech, pro-innovation candidate ahead of the 2027 election. The Democratic Party, known for its liberal stance, might see crypto as a way to appeal to younger, tech-savvy voters, per Yonhap News. His call for a Bitcoin ETF and deregulation could be a strategic move to differentiate himself from the ruling People Power Party, which has been more cautious on crypto, per Korea Times.

Han’s motivation might include economic growth, given South Korea’s export-driven economy and the potential for blockchain to create jobs and attract foreign investment. His speech likely highlighted how a Bitcoin ETF would provide regulated access for retail and institutional investors, while deregulation would foster startups, aligning with his vision for a digital economy.

Implications and Market Reaction

Han’s proposals could have significant implications:

  • Bitcoin ETF Approval: If approved, it could boost investor confidence, attract institutional capital, and increase trading volumes on South Korean exchanges, per Financial Times. This might also pressure other Asian nations to follow suit, enhancing South Korea’s regional leadership.
  • Crypto Deregulation: Reducing regulatory burdens could spur innovation, with more dApps and crypto projects launching, potentially boosting the economy. However, critics, per CoinDesk, warn of increased risks like money laundering and market volatility, requiring a balanced approach.

The crypto community on X is divided, with CryptoNews noting, “Han’s Bitcoin ETF push could spark Asia’s crypto boom! ,” while SkepticTrader cautions, “Deregulation sounds good, but volatility could hurt investors.” Analysts, per Blockworks, suggest Han’s stance could influence voter decisions, making crypto a key election issue.

Unexpected Detail: Political Timing

An interesting aspect is the timing, with Han’s announcement ahead of potential primaries in 2025, possibly aiming to appeal to younger, tech-savvy voters, adding a political layer to his economic proposal, not always highlighted in crypto news.

Conclusion

In conclusion, South Korean presidential hopeful Han’s call for Bitcoin ETF approval and crypto deregulation on March 10, 2025, reflects a bold vision for digital asset leadership. Aimed at attracting investment and fostering innovation, it faces opposition due to risks, creating debate over South Korea’s crypto future. As the election nears, this could shape policy, with neredex.com providing updates.

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