South Korea's new president Lee Jae-myung introduces a series of encryption policies, sparking heated discussions in the market

South Korea's newly elected president, Lee Jae-myung, won the 21st presidential election with a vote rate of 49.42%, setting a record for the highest number of votes in history. As an inspirational figure who rose from humble beginnings to become president, Lee Jae-myung enjoys widespread support from the South Korean public.

It is worth noting that in this South Korean presidential election, cryptocurrency policy has become a hot topic among the candidates for the first time. To attract young voters and support from the middle class, Lee Jae-myung proposed a series of positive and progressive cryptocurrency asset policy commitments, stating that after taking office, he would strive to "make South Korea a digital asset hub" and lay the foundation for the development of the virtual asset industry.

Lee Jae-myung demonstrated a positive attitude towards encryption assets as early as his campaign in 2022, and he became the world's first presidential candidate to raise campaign funds through the issuance of NFTs. He believes that even if there are issues in the current market, they should not be avoided but rather seized as opportunities. Lee Jae-myung promised to actively support the establishment of a digital asset ecosystem, including innovative digital asset issuance, secure transaction storage, indirect investment, and risk diversification through insurance.

In this election, Lee Jae-myung further expanded his proposals for virtual asset policies, putting forward more specific measures:

1. Promote spot ETFs and stablecoins: Lee Jae-myung promised to institutionalize virtual asset spot ETFs and establish an integrated regulatory system. He also supports the issuance of a Korean won-pegged stablecoin to reduce the capital outflow issues caused by foreign currency stablecoins.

2. Allow national pension funds and government agencies to invest in encryption assets: Lee Jae-myung proposed that after meeting stability standards, national pension funds and other public funds should be allowed to allocate encryption assets, believing that this aligns with the international optimization model's diversification investment strategy.

3. Relax cooperation between exchanges and banks: Lee Jae-myung is inclined to relax the regulations on exchanges to enhance market competitiveness. He proposed establishing a comprehensive monitoring system to centrally regulate major trading platforms, guided by the government to reduce market trading costs.

4. Lowering encryption taxes: The Democratic Party, led by Lee Jae-myung, proposed to gradually implement a tax on cryptocurrency transactions, but plans to significantly increase the deductible tax exemption from 2.5 million won to 50 million won to alleviate the tax burden on ordinary investors, especially young people.

Lee Jae-myung's victory signals a potential significant change in South Korea's policy direction regarding encryption assets. From "embracing regulation" to "nurturing the industry," and from institutional development to aligning with the capital market, his "new encryption policy" is beginning to take shape. Against the backdrop of multiple countries globally strengthening compliance regulations for cryptocurrencies, whether South Korea can achieve its goal of becoming a "digital asset center" through this round of policy reforms is worth the market's continued attention.