South Korea is undergoing a pivotal political transition, and its new government is experimenting with bold crypto policies. Two key proposals gaining traction are:

• KRW-backed stablecoins

• Legalized leverage trading

On June 10, ruling party lawmaker Min proposed a draft of the Digital Asset Basic Act, which includes these measures. If implemented, Korea could see comprehensive crypto taxation, while exchanges like Upbit and Bithumb—already marketing themselves globally—may trigger a second wave of trading volume once leverage trading goes live.

Locals jokingly call themselves the "Leverage Nation," and the data backs it up:

• 6 of Korea’s top 10 most-traded stocks are leveraged ETFs.

• TQQQ (a 3x leveraged Nasdaq ETF) ranks 6th in Koreans’ overseas stock holdings.

This appetite for high-risk bets isn’t just a meme—it’s ingrained. Even on Upbit, Bitcoin rarely cracks the top 5 trading pairs. With $2B daily volume (all spot), introducing leverage could triple activity, given the typical 3-4x gap between spot and derivatives markets.

Past attempts to ease crypto regulations stalled, but this time, the political will is visible:

• The ruling Democratic Party supports taxing digital assets, but only after establishing oversight—hence the push for KRW stablecoins and leverage first.

• Kim Yong Bum, the President’s new policy chief and ex-Hashed Open Research lead, is a vocal advocate for stablecoin legislation and lighter crypto restrictions.

The draft bill proposes collateralized spot leverage (no derivatives or futures). While cumbersome, similar products dominate Korea’s stock market. Expect 3-10x leverage, with altcoins gaining explosive volume once approved.

KRW stablecoins could amplify this effect, creating a feedback loop of liquidity.

Despite pro-crypto reforms, Play-to-Earn and Web3 gaming won’t get relief soon. Both progressive and conservative governments have long cracked down on gambling-like mechanics in games.

With Korea’s gaming industry shrinking for three years—and major studios fleeing overseas—P2E has no domestic champions. Even global hits like MapleStory Universe avoid Korean-language AMAs.

Overseas projects are aggressively courting Korean exchanges:

• Teams host offline meetups and offer perks to win local holders.

• If leverage expands beyond Bitcoin to altcoins, the battle for listings will intensify—ushering in the "Upbit Era’s" peak.

The takeaway: Korea’s crypto market is poised for a leverage-fueled boom, but don’t expect P2E to join the party.

Translated by GPT, edited by BlockBeats

South Korea is undergoing a pivotal political transition, and its new government is experimenting with bold crypto policies. Two key proposals gaining traction are:

• KRW-backed stablecoins

• Legalized leverage trading

On June 10, ruling party lawmaker Min proposed a draft of the Digital Asset Basic Act, which includes these measures. If implemented, Korea could see comprehensive crypto taxation, while exchanges like Upbit and Bithumb—already marketing themselves globally—may trigger a second wave of trading volume once leverage trading goes live.

Locals jokingly call themselves the "Leverage Nation," and the data backs it up:

• 6 of Korea’s top 10 most-traded stocks are leveraged ETFs.

• TQQQ (a 3x leveraged Nasdaq ETF) ranks 6th in Koreans’ overseas stock holdings.

This appetite for high-risk bets isn’t just a meme—it’s ingrained. Even on Upbit, Bitcoin rarely cracks the top 5 trading pairs. With $2B daily volume (all spot), introducing leverage could triple activity, given the typical 3-4x gap between spot and derivatives markets.

Past attempts to ease crypto regulations stalled, but this time, the political will is visible:

• The ruling Democratic Party supports taxing digital assets, but only after establishing oversight—hence the push for KRW stablecoins and leverage first.

• Kim Yong Bum, the President’s new policy chief and ex-Hashed Open Research lead, is a vocal advocate for stablecoin legislation and lighter crypto restrictions.

The draft bill proposes collateralized spot leverage (no derivatives or futures). While cumbersome, similar products dominate Korea’s stock market. Expect 3-10x leverage, with altcoins gaining explosive volume once approved.

KRW stablecoins could amplify this effect, creating a feedback loop of liquidity.

Despite pro-crypto reforms, Play-to-Earn and Web3 gaming won’t get relief soon. Both progressive and conservative governments have long cracked down on gambling-like mechanics in games.

With Korea’s gaming industry shrinking for three years—and major studios fleeing overseas—P2E has no domestic champions. Even global hits like MapleStory Universe avoid Korean-language AMAs.

Overseas projects are aggressively courting Korean exchanges:

• Teams host offline meetups and offer perks to win local holders.

• If leverage expands beyond Bitcoin to altcoins, the battle for listings will intensify—ushering in the "Upbit Era’s" peak.

The takeaway: Korea’s crypto market is poised for a leverage-fueled boom, but don’t expect P2E to join the party.

Translated by GPT, edited by BlockBeats