Trump’s offer to make the “American cryptographic capital”: is South Korea ready?

Four days after his second term, US President Donald Trump published a decree on January 23 to promote cryptocurrency, triggering a delayed excitation within the industry and propelling Bitcoin to his previous record.

The prescription largely reiterates Trump’s Pro-Crypto position, including calls for the creation of a presidential working group to shape the policy and put an end to the creation of a digital currency from the American Central Bank.

The digital asset market has strongly reacted to the smallest movements – or their absence – of Trump, indicating the increased volatility that the global market is likely to live while it prepares radical reforms in the regulatory landscape of cryptocurrency.

In the midst of this global enthusiasm of cryptography stimulated by predictions of experts who remain optimistic, South Korea – a major player in the cryptocurrency market – is torn between investors calling for faster regulatory reform and The prudent approach to decision -makers. The country remains behind the United States and other countries advanced in the development of a complete regulatory framework.

Here we are more closely looking at Trump’s vision and its meaning for South Korea.

Obvious changes are already underway in the United States, in particular the withdrawal of a controversial framework which described a strict disclosure for financial companies holding a crypto.

The rule, SAB 121, had forced financial companies to classify the crypto detained for customers as active and passive. The financial and cryptographic sectors criticized it, arguing that it weakens the stability of banks’ capital and hampered the growth of crypto services by not recognizing the unique nature of digital assets.

Last month, the American Securities and Exchange commission canceled the rule, removing an important obstacle for banks entering the crypto guard market and reporting an evolution towards greater integration of traditional finances and crypto- cash.

On the other hand, Korea has made slower progress in this part. Currently, there is no legal basis for banks to offer direct police custody, because digital assets are not recognized as trust assets under the law on capital markets.

In response, local banks have established a partnership with cryptographic companies to establish virtual asset childcare services. For example, KB Kookmin Bank co-founded Koda with Haechi Labs and chopped, while Shinhan Bank joined Korbit to create KDAC.

However, even such efforts have been faced with challenges due to underdeveloped regulations, the restrictions on the commitment of corporate cryptography being an important obstacle.

Currently, companies in Korea are limited by opening real accounts, preventing them from negotiating assets of cryptocurrency in Korean currency won through exchanges and limiting their ability to fully use digital assets.

There has been progress recently, with the Korean Financial Services Committee gradually announcing the plans to allow real name accounts for companies, the president of the FSC, Kim Byoung-Hwan, promising a “fast review”.

KP Jang, Director of the Strategy of the Crypto Research Platform based in Seoul, Xangle, believes that authorizing it companies to invest in cryptocurrencies is the first most important step to advance the cryptographic landscape .

“The expansion of corporate cryptocurrency accounts is quickly crucial,” said Jang. “Allowing companies to exchange and hold digital assets will help them explore new commercial models, stimulate innovation in the private sector and stimulate the vitality of the wider digital asset ecosystem.”

Trump’s decree also highlights its support for stablecoins or private digital currencies set for assets like the US dollar. Namely, the USDT is an example designed to be a digital substitute for the dollar.

Unlike the digital currencies of the government’s central bank controlled by the government, the demand for stable fuel for the dollar and the US treasury bills while limiting the surveillance of the government of individual transactions. Trump promised to stop the development of CBDC, declaring: “Forget it – there will never be a CBDC while I am president.”

Trump supervises his opposition as a defense of privacy while the initiates of the industry see a more strategic reason. More than 130 nations develop CBDC, China and Russia already testing cross -transactions to challenge the domination of the dollar.

“Unlike CBDC, which require significant investments, Stablecoins strengthen the domination of the dollar in a profitable manner while maintaining stability,” said Xangle Choi Seung-Ho researcher, adding, “with China expanding his digital yuan, The United States has probably thwarted by strengthening the dollar -PEGGED Stablecoins and private payment networks on the market.

Experts argue that Korea must adopt both CBDC and stabbed.

“Even if Trump rejects CBDC, central banks around the world are growing to allow faster, cheaper and more secure transactions between financial institutions. It is an evolution of the financial sector that Korea must continue, “said Kim Kab-Lae, principal researcher with capital Market Research Institute.

Korea plans to test its “Worn Won” this year, issuing deposit tokens – digital payment instruments based on bank deposits – to integrate digital payments into the traditional monetary system.

The regulation of Stablecoin, underlined by Kim, must be approached separately.

“Korea must weigh the impact of the expansion of stablescoin on the domination of the dollar and financial stability while ensuring the protection of investors. The USDT is one of the most negotiated virtual assets in the country, but its regulatory framework is lagging behind the United States, where strict reserve and redemption requirements guarantee the stability of value ”, He declared, adding that in the long term, Korea must also throw the low global adoption of labeled stablescoins.

In response to the growing demand for the regulation of stablescoin, the FSC recently announced that it will start discussions on the establishment of a regulatory framework of Stablecoin within the framework of the second phase of the law on the protection of users of virtual assets, which is currently in preparation.

To in-depth strengthen Pro-Crypto regulations, Trump has ordered the training of a working group to develop sectoral regulations and assess the creation of a stock of national cryptocurrency.

On the other hand, Korea has maintained a more cautious position on digital assets, where cryptocurrency investments are still widely considered speculative. Regulations such as the virtual asset use user protection act, implemented in July 2024, remain focused on the protection of investors and the prevention of unfair exchanges.

Consequently, the funds negotiated on the stock market based on cryptocurrencies remain prohibited, and discussions on the authorization of corporate cryptography accounts are still in the first stages.

Industry experts point out that the second phase of the virtual asset law should be developed from its first which only safeguards investors by attacking problems such as the issuance of parts, the Disclosure requirements , classifications of coins and business account approvals.

“We need a clearer regulatory framework that folds cryptocurrencies and capital markets, specifically resolving questions such as the state of digital asset titles,” said Kim.

“Key problems include standards for the emission of cryptographic assets, qualifications and requirements to disclose issuers. Current licenses based on registration for digital asset service providers must be examined and advanced to an approval system, while the rules of the industry association should be created to establish directives self -regulating. »»

One of Trump’s most ambitious proposals is a reserve of American strategic bitcoin.

“Never sell your bitcoin,” Trump said at the Nashville Bitcoin conference in July, promising to rely on stocks of 200,000 government assets – worth around $ 21 billion.

The idea positions Bitcoin as a strategic reserve asset, similar to gold or oil, to be deployed during economic crises. Another key objective is that the reserve addresses the national debt of 35 billions of US dollars. Bitcoin demand is expected to increase, the New York -based investment company Vaneck estimated that if Bitcoin reaches $ 42 million, holding 1 million parts in the reserve could reduce American debt by 35%.

Trump’s crypto program reported a new geopolitical competition on Bitcoin reserves. Reports suggest that countries, including Japan and China, accumulate Bitcoin, Moscow was considering a national reserve.

Kim Min-Seung, chief of research in Korbit, predicted a “cryptographer arms race”, trained by a fear of missing.

“If the United States leads with a bitcoin reserve, other governments will follow. This could force South Korea to consider keeping Bitcoin in its reserves to remain competitive, “said Kim.

A redesign of the cryptographic regulations of South Korea may be necessary to follow the pace, according to Jang de Xangle, who said that it should start with a re -evaluation of the legal state of digital assets and a related policies examination for s ‘Align on global trends.

By Choi Ji-Won ([email protected])