- Hong Joon-pyo pledges to match Trump’s crypto deregulation strategy if elected president.
- $35.1 billion to be invested in AI, quantum tech, and superconductors over five years.
- South Korea intensifies crackdown on unregistered exchanges; delays VASP regulation to December 2025.
Hong Joon-pyo, a candidate in South Korea’s right-wing People Power Party presidential primary, has pledged to reform cryptocurrency regulations at a level comparable to the approach taken by former U.S. President Donald Trump. The announcement was made during a policy briefing by Hong on April 16, Yonhap News reported.
During the meeting, he stated, “To promote the growth of the blockchain and virtual asset industry, I will implement regulatory reforms on par with those carried out by the Trump administration in the United States.“
The former mayor of Daegu is known to be an active politician who supports more flexible policies for digital assets. He criticized past efforts to tax cryptocurrencies and called them “retrogressive,” urging legal frameworks to support emerging technologies.
Tech-Focused Growth Plan and Blockchain Integration
The introduction of crypto policies from Hong Kong coincided with his proposal to increase national development through investments in disruptive technologies. Research and development in artificial intelligence and quantum computing, and superconductors became his target sectors for which Hong dedicated at least 50 trillion Korean won ($35.1 billion) for the next five years.
Hong indicated that he wants to implement blockchain technology in public service operations. According to Hong, its application offered potential advantages to simplify administrative procedures while increasing governance transparency. The proposal functions as part of an existing initiative that uses digital resources to revamp governmental infrastructure systems.
Crypto Regulation Developments in South Korea
The call for crypto reform comes amid increased oversight by South Korean regulators. According to our recent report, the Financial Services Commission (FSC) has ordered 14 unregistered cryptocurrency exchange apps to be removed from Apple’s App Store. The move is part of an ongoing crackdown on platforms operating without licenses in the country. Major global exchanges such as KuCoin and MEXC were among those affected by the recent app store removals.
This action came shortly after a similar move by Google Play on March 26, which restricted access to 17 unregistered crypto exchanges. The Financial Services Commission (FSC) had previously listed 22 platforms that failed to meet local registration standards. Many of these are now blocked for South Korean users through key app marketplaces.
As AltcoinBeacon previously reported, the Financial Supervisory Service (FSS) has delayed the enforcement of the Credit Information Act for Virtual Asset Service Providers (VASPs). Meanwhile, the revised implementation date is now set for December this year. The delay comes after feedback from the crypto industry, which requested more time to comply with the new regulatory requirements.
Political Landscape Shifts Ahead of Presidential Election
The impeachment of President Yoon Suk-yeol has increased pressure on the presidential race. Earlier on April 4, the Constitutional Court upheld the National Assembly’s vote to oust Yoon from office after he declared martial law in December 2024.
The political field is open for the presidential election to be held on June 3. None of the People Power Party nor Democratic Party have even officially nominated its candidate. Hong is one of eight individuals seeking the People Power Party’s nomination. Analysts say Yoon’s impeachment has also handed the opposition Democratic Party an early advantage. Reports indicate that the National Pension Service—the largest pension fund globally—is exploring blockchain to enhance transaction transparency. Additionally, the fund’s investment in Coinbase shares highlights a wider institutional engagement with digital assets.
