South Korean presidential candidates support legalization of Bitcoin ETFs

South Korean presidential candidates support legalization of Bitcoin ETFs

South Korea may be poised to follow Hong Kong’s lead in legalizing spot Bitcoin exchange-traded funds (ETFs), as top presidential candidates signal support for institutional crypto adoption.

However, analysts remain cautious about the timeline for actual policy implementation, reports Cointelegraph.

On May 14, CryptoQuant CEO Ki Young Ju wrote that “all three major South Korean presidential candidates support Bitcoin ETFs and institutional investment,” underscoring a rare consensus on crypto reform. At present, South Korea bans institutional access to crypto ETFs, meaning retail investors account for 100% of local market volume.

Democratic Party renews crypto-friendly platform

Democratic Party leader Lee Jae-myung recently pledged to legalize spot crypto ETFs, reduce transaction fees, and foster a safer investment environment — particularly for younger generations. The promises echo similar initiatives from the party’s 2024 campaign, which stalled amid legislative gridlock.

Lee’s comments reflect growing interest in aligning South Korea with global crypto finance trends, including developments in the U.S., where spot Bitcoin ETFs have drawn tens of billions in institutional inflows since their approval earlier this year.

Experts warn of political inertia and structural hurdles

Despite political momentum, blockchain adviser Anndy Lian warned against assuming quick progress. “The pledges are promising, but history tempers optimism,” Lian told Cointelegraph, referencing past failures by the ruling People Power Party to follow through on ETF reform prior to President Yoon’s impeachment.

He noted that South Korea’s Financial Services Commission has shown signs of “regulatory openness,” but cautioned that structural factors — including lingering concerns about volatility, oversight, and international compliance — could delay execution.

Hong Kong’s own spot Bitcoin and Ether ETF launches on April 30, while symbolically important, saw lackluster trading volume relative to their U.S. counterparts — a reminder that legal approval doesn’t always translate to immediate market traction.

Whether South Korea will break the cycle of political promises without follow-through remains to be seen, but the growing chorus of support suggests the next administration may finally act on long-delayed crypto legislation.

Recently we wrote that ​the U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale’s proposed spot Solana (SOL) ETF, pushing the review deadline to October 2025.

 

Source: https://tradersunion.com/news/cryptocurrency-news/show/262159-south-korean-presidential-candidates/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Bitcoin unsure as recession looms, US-China tariff talks kick off

Bitcoin unsure as recession looms, US-China tariff talks kick off

Bitcoin’s recovery to its all-time high may be threatened by rising recession fears, which could ease if the United States and China begin tariff negotiations this month, research analysts told Cointelegraph.

Appetite for global risk assets such as Bitcoin may take another hit, with analysts from Apollo Global Management predicting a recession by the summer.

“Apollo predicting Summer Recession: Sharpest decline in earnings outlook since 2020,” cross-asset analyst Samantha LaDuc wrote in an April 26 X post.

The progress on the tariff negotiations may be the most significant factor impacting a potential recession and Bitcoin’s price trajectory, according to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen.

“May is seen as pivotal as Chinese shipments reach the US’s shores, and exemptions on some tariff categories such as auto parts and sub-USD-800 shipments from China/ Hong Kong expire,” Barthere told Cointelegraph, adding that a lack of negotiations in May could lead to an economic recession and “double-digit losses” for Bitcoin.

However, this is the least likely scenario, since neither China nor the US “ has an economic interest in the interruption of bilateral trade,” Barthere said, adding:

“Given this, the main tariff scenario is for the US reaching deals or at least ‘agreements in principle’ with its main trade partners, probably settling around the 10% reciprocal tariff ‘floor’.”

If that scenario plays out and trade tensions ease in May, Bitcoin is likely to revisit its all-time high, Barthere said.

The US has “proactively reached out to China through multiple channels,” for signaling its openness for tariff negotiations, Reuters reported on May 1, citing unnamed sources who spoke to state-affiliated Chinese media platform Yuyuan Tantian.

Bitcoin may rally despite recession

While most analysts hope to see trade negotiations in May alleviate economic concerns, Bitcoin may see more upside even in the face of a potential recession.

“Initially, Bitcoin and cryptocurrencies may experience volatility, dropping alongside risk assets like stocks due to investor sell-offs,” Anndy Lian, author and intergovernmental blockchain adviser, told Cointelegraph, adding:

“Historical data, such as Bitcoin’s recovery post-2020 recession, suggests it could rebound, especially if seen as a hedge against inflation.”

“In stagflation (high inflation and slow growth), Bitcoin, often compared to gold, may perform well, attracting investors seeking value preservation. Yet, its increased correlation with the stock market, particularly tech stocks, introduces uncertainty,” said Lian, adding that crypto investors should continue monitoring economic policy shifts to gauge market direction.

However, Bitcoin’s increasing correlation with tech stocks adds uncertainty to that outlook. Following the COVID-19 crash in March 2020, Bitcoin surged more than 1,050%, climbing from $6,000 to an all-time high of $69,000 in November 2021. That rally came after the Federal Reserve launched its $4 trillion asset purchase program in March 2020.

Other industry watchers remain concerned by the crypto market’s response to economic stagnation.

“If the analysts are correct about the recession (which is certainly not guaranteed), crypto markets will likely decline alongside broader risk-on assets and equities,” according to Marcin Kazmierczak, co-founder and chief operating officer of blockchain oracle firm RedStone.

Kazmierczak said April’s “Liberation Day tariffs and trucking slowdown could create economic contagion that historically hits speculative assets hardest.”

“While crypto’s growing institutional adoption introduces some uncertainty, it’s not enough to overcome the fundamental risk-on classification that still dominates market behavior,” he added.

 

Source: https://cointelegraph.com/news/bitcoin-uncertainty-recession-us-china-trade-talks

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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El Salvador adds Bitcoin, but is complying with IMF deal — Director

El Salvador adds Bitcoin, but is complying with IMF deal — Director

El Salvador, the world’s first country to adopt Bitcoin as legal tender, is still acquiring Bitcoin despite comments from the International Monetary Fund (IMF) appearing to claim the opposite.

The treasury of El Salvador acquired 7 Bitcoin worth over $650,000 in the seven days leading up to April 27, blockchain data from El Salvador’s Bitcoin Office shows.

When asked about the country’s Bitcoin investments, Rodrigo Valdes, director of the Western Hemisphere Department at the IMF, said that the country continues to comply with its agreement to halt government Bitcoin accumulation.

“In terms of El Salvador, let me say that I can confirm that they continue to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector, which is the performance criteria that we have,” said Valdes during an April 26 press briefing.

“But on top of that, I think this is very important for the discussion in El Salvador,” he added. “The program of El Salvador is not about Bitcoin. It’s much more, much deeper in structural reforms, in terms of governance, in terms of transparency.”

In December 2024, El Salvador struck a deal with the IMF for a $1.4 billion loan, which required the government to drop Bitcoin’s status as a legal tender and stop its BTC accumulation.

Flexible interpretation leaves room for Bitcoin buys

The IMF’s agreement may still enable room for purchases through non-governmental entities, according to Anndy Lian, author and intergovernmental blockchain adviser.

“The IMF’s ‘flexible interpretation’ suggests purchases may involve non-public sector entities or reclassified assets, maintaining technical compliance,” Lian told Cointelegraph, adding:

“This alternative approach allows El Salvador to retain its Bitcoin-friendly image while securing critical IMF funding to address unsustainable public debt and limited reserves.”

Lian added that El Salvador’s strategy highlights the growing tension between financial innovation and traditional economic policies.

“El Salvador’s experience offers valuable lessons for nations exploring crypto adoption, emphasizing the need for robust regulatory frameworks and state capacity to navigate international financial pressures,” he added.

 

Source: https://cointelegraph.com/news/el-salvador-continues-bitcoin-purchases-despite-imf-agreement

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j