Emre Yumlu 
The upcoming election process in South Korea offers hope for the legalization of Bitcoin ETFs. The country’s three leading presidential candidates have taken a positive stance on crypto assets, particularly on spot Bitcoin ETFs. However, the failure to fulfill similar political promises in the past leads some industry experts to remain cautious.
Bitcoin ETFs Still Banned, Yet Demand Remains High
Currently, spot Bitcoin ETFs and institutional crypto investments are not legal in South Korea. This means that the entire trading volume comes from retail investors. Ki Young Ju, CEO of on-chain data platform CryptoQuant, stated that all three major candidates support Bitcoin ETFs and institutional investments.
All three major South Korean presidential candidates support #Bitcoin ETFs and institutional investment.
Currently, Bitcoin ETFs and institutional investments are banned in Korea. 100% volume comes from retail. pic.twitter.com/hL6cKci5VK
— Ki Young Ju (@ki_young_ju) May 14, 2025
New Promises from the Democratic Party
On May 6, Democratic Party leader Lee Jae-myung promised new regulations aimed at legalizing spot crypto ETFs, reducing transaction fees, and creating a safe investment environment for young people to plan their future. However, the party had made similar promises during its previous election campaign, but no concrete progress was achieved.
Promises Made, but Past Actions Raise Doubts
While the candidates’ crypto-friendly approaches raise expectations for expanding the legal framework of digital assets in the country, experts warn of past experiences. Blockchain advisor Anndy Lian noted that the candidates’ positions resemble recent developments in Hong Kong but emphasized that success depends on various factors:
“A pro-crypto president could initiate a reform process aligned with global trends, like in the US, where Bitcoin ETFs have seen billions in net inflows. But similar promises were made in the past, without real action.”
Lian also reminded that the People Power Party, which came to power in 2022, had pledged to lift the ETF ban and revise the controversial “one exchange – one bank” rule. However, these goals were not realized before President Yoon’s impeachment.
Hong Kong’s ETFs Disappointed Expectations
Meanwhile, Bitcoin and Ethereum-based ETFs, which began trading in Hong Kong on April 30, 2024, fell short of expectations with lower trading volumes compared to their US counterparts. This suggests that the success of similar products in South Korea would depend not only on regulation but also on investor interest and market conditions.
The steps to be taken in South Korea could have an impact not just regionally, but globally. However, true reforms require more than political promises.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.