South Korean Candidate Pledges Trump-Inspired Crypto Deregulation

South Korea’s crypto sector may be poised for a bold transformation inspired by US deregulation under Donald Trump.

Presidential candidate Hong Joon-pyo declared Tuesday at his campaign office in Seoul’s Yeouido district:

“In order to foster blockchain and virtual assets as a single industry, I will eliminate regulations as much as the Trump administration in the United States did.”

Presidential candidate Hong Joon-pyo has pledged to roll back restrictive crypto policies, formally recognise blockchain and virtual assets as a core industry, and integrate the technology into public services.

His proposals reflect a clear departure from South Korea’s traditionally cautious stance, and mirror Trump-era reforms that catalysed growth in the US digital asset space.

Hong, a vocal critic of the 2021 crypto tax policy, argued that such measures stifle innovation and urged the government to invest in emerging technologies instead.

He believes regulatory streamlining is essential to unlocking blockchain’s full potential and driving national economic recovery.

His announcement follows a major US policy shift, where President Trump signed a resolution repealing an IRS rule that imposed broker-style reporting requirements on decentralised finance platforms.

Hailed as a watershed moment, it marked the first piece of crypto legislation enacted by a US president—further fuelling speculation that deregulation could become a defining electoral strategy well beyond American borders.

Is Trump’s Crypto Playbook Going Global?

Hong, a prominent contender in the People Power Party’s presidential primary, unveiled his policy platform on 16 April at the Daeha Building in Yeouido, outlining a bold vision for South Korea’s digital asset future.

Drawing clear parallels with former President Trump’s deregulatory approach in the US, Hong pledged to roll back restrictive crypto regulations to foster a more innovation-friendly environment for blockchain and virtual assets.

His strategy is not just economic—it is political.

With South Korea emerging as a global crypto hub and home to over 15 million users, many of whom are young, tech-savvy, and politically engaged, crypto policy has become a defining issue ahead of the 3 June 2025, presidential election.

During last year’s parliamentary race, both major parties vied for the support of younger voters—particularly those in their 20s and 30s—by promising crypto-friendly reforms, including tax delays.

Just as crypto-backed PACs poured more than $100 million into US elections, South Korean voters may now play a similarly decisive role in shaping policy and determining political outcomes.

Hong’s alignment with Trump-era crypto strategies reflects a broader global trend: pro-crypto platforms are becoming central to electoral playbooks in countries where digital assets are rapidly reshaping public discourse and economic opportunity.

AI and Quantum Tech Now Central to Hong’s Platform

In addition to his crypto proposals, Hong unveiled a five-point economic agenda aimed at revitalising South Korea’s economy and positioning it at the forefront of next-generation technologies.

His blueprint includes fostering public-private partnerships for economic recovery, driving growth through cutting-edge technologies, ensuring equitable distribution based on productivity, promoting people-centered job creation and welfare, and maintaining responsible national debt levels tied to long-term growth.

To support this vision, Hong pledged a minimum investment of 50 trillion won over the next five years, with a focus on advancing artificial intelligence and quantum technologies.

His platform reflects a broader shift in South Korea’s economic priorities—one that increasingly embraces blockchain and digital assets as strategic assets.

Last August, the National Pension Service (NPS), one of the world’s largest public pension funds, made headlines by acquiring 245,000 shares in Strategy (formerly MicroStrategy), valued at $33.75 million, and previously purchased over 280,000 shares in Coinbase.

These investments signal that digital assets are no longer on the fringes of financial policy—they are quickly becoming integral to national strategy and, increasingly, to the country’s political discourse.

South Korea Moves Forward with Digital Asset Regulation

South Korea's crypto industry is facing growing discontent over the recently introduced draft of the Basic Digital Asset Act, which targets the regulation of the stablecoin sector.

Under the proposed legislation, local stablecoin issuers would be required to seek approval from the Financial Services Commission before launching any coin.

However, foreign-issued stablecoins, such as USDT, are exempt from this requirement, a provision that has raised concerns among industry experts who argue that it creates an unfair playing field for domestic stablecoin platforms.

The future of this regulatory approach, and whether Hong’s promises to ease crypto regulations will take shape, hinges on the outcome of South Korea's presidential election, depending on whether current President Yoon Suk Yeol’s impeachment is upheld.

As the political landscape shifts, could Hong’s stance on crypto deregulation signal the rise of Trump-inspired Web3 strategies as a new political tool across Asia?