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What happened?
In an unprecedented move, all three leading candidates in South Korea’s upcoming presidential election have expressed support for Bitcoin exchange-traded funds (ETFs) and institutional investment in digital assets. This is significant as South Korea currently prohibits institutional crypto investments, with the market driven entirely by retail traders. The candidates’ stance marks a pivotal shift in the nation’s political landscape, highlighting the growing importance of cryptocurrencies in policy-making.
Who does this affect?
This development primarily impacts retail investors in South Korea who currently account for the entire crypto trading volume in the country. It also concerns potential institutional investors who are currently restricted from entering the crypto market. Moreover, it affects younger and middle-class demographics, as policy proposals target these groups by aiming to broaden investment options and make crypto trading more accessible.
Why does this matter?
This could significantly impact the market by potentially transforming South Korea from a retail-focused crypto market to a global crypto hub. If these policies are implemented, it may lead to an increase in crypto adoption and investment in the region. Furthermore, this aligns South Korea with the global trend of embracing digital assets, especially as major economies like the U.S. advance their own regulatory frameworks.
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