South Korea's new president Lee Jae-myung promotes reform of encryption asset policies

South Korea welcomes its new president, Lee Jae-myung. As an inspirational figure who rose from humble beginnings to hold the highest power in the country, Lee Jae-myung was elected with nearly 50% of the votes, setting a record for the highest vote count in past elections. It is noteworthy that cryptocurrency policy has become a hot topic in this presidential election, and Lee Jae-myung has shown a positive attitude towards encryption assets.

Lee Jae-myung showed an open attitude towards encryption assets as early as his campaign in 2022, and pioneered the fundraising for his campaign through the issuance of NFTs. He promised to actively support the establishment of the digital asset ecosystem, including innovative digital asset issuance, secure trading and storage, and more. After taking adequate protective measures, he also considered lifting the restrictions on the initial token issuance (ICO).

After being elected, Lee Jae-myung further expanded his encryption policy proposals. He suggested promoting the institutionalization of virtual asset spot ETF and building an integrated regulatory system. In addition, he supports the issuance of a Korean won-pegged stablecoin to reduce the capital outflow issues caused by foreign currency stablecoins.

In terms of institutional investment, Lee Jae-myung supports expanding the allocation of public funds to encryption assets, proposing that government agencies such as national pension funds be allowed to invest in cryptocurrencies after meeting stability standards. His team believes that this is not speculative behavior, but rather a diversification investment strategy that aligns with international optimization models.

Regarding the regulation of encryption exchanges, Lee Jae-myung is inclined to loosen regulations and enhance market competitiveness. He proposed the establishment of a comprehensive monitoring system, led by the government, to reduce market trading costs. In terms of taxation, his political party proposed significantly increasing the tax exemption threshold for individual trading gains to alleviate the tax burden on ordinary investors, especially young people.

Lee Jae-myung's encryption policy shows a shift from "embracing regulation" to "nurturing the industry." In the context of strengthening compliance regulation for cryptocurrencies globally, whether South Korea can achieve the goal of becoming a "digital asset center" through this round of policy changes is worthy of continuous market attention.