Lee Jun-seok, the Reform Party presidential candidate, stated that Bitcoin (BTC) could be held as a part of the national strategic assets.

Lee Jun-seok, the Reform Party presidential candidate, stated that Bitcoin (BTC) could be held as a part of the national strategic assets.

Republican presidential candidate Lee Jun-seok said that it would be possible to hold Bitcoin (BTC) as part of the national strategic assets, but it would be better to hold it in the form of an Exchange Traded Fund (ETF) than to hold it physically, and there is no need to increase its proportion.

Candidate Lee appeared on the YouTube channel ‘Kim Jakkga TV’ on the 18th and discussed the issue of diversifying foreign exchange reserves in the midst of the changing global economic paradigm and its implications for the Korean economy.

“The dollar should originally be evaluated as a stable asset, but as U.S. President Donald Trump keeps implementing provocative economic policies such as tariffs and the trust in the dollar is being shaken, there is a huge interest in investing in a new stable asset and that is leading to an increase in investment in Bitcoin, especially indirect investment through ETFs,” Candidate Lee said.

“Korea can also step up to reserve (Bitcoin) to some extent, but there is an overlap with the role of gold, so I don't think we need to increase the proportion too much and it is preferable to hold it in forms like ETFs. Physical holding is not allowed.”

When asked by host Kim Yong-ho about whether Bitcoin is a safe asset, Candidate Lee replied, “Amid the growing instability of the dollar and the won and the increasing demand for a new world currency, Bitcoin is recognized as a part of the new asset class and is naturally showing an upward trend. It is hard to see it as a bad investor asset in the short-term view.”

“However, there are extreme variables that could affect Bitcoin's price in the long term. For example, if quantum computer technology develops rapidly and reaches a level where it can decrypt the Bitcoin blockchain, it could have a fatal blow to Bitcoin. Also, if the U.S. government suddenly changes its mind and decides to ban Bitcoin trading in the U.S. market en bloc, it will have a huge impact.”

Candidate Lee suggested directions for institutional reform of the virtual asset market as a whole.

“The KYC (Know Your Customer) procedure to prevent money laundering should be further strengthened and the role of the Financial Intelligence Unit (FIU) needs to be expanded,” Candidate Lee said. “However, asset securitization products such as STO (Security Token Offering) should rather be activated to diversify investment channels and expand the capital market. In addition, the listing requirements for virtual assets must be strengthened unconditionally. I hope exchanges will handle listing requirements more strictly through a consultative body like a council composed of academics, experts in the field, and exchange officials.”

Regarding existing investor protection measures, Candidate Lee pointed out, “Many operation forces have already left with funds, and some large exchanges like Bithumb have changed ownership structures, so it is realistically difficult to recover damages. Structural reform of exchanges is urgent to prevent recurrence of damage.”

Candidate Lee stated that exchanges should ultimately aim to form a consortium like KRX (Korea Exchange) to create a joint system such as ‘Korea Virtual Asset Exchange’ and each platform should seek differentiation through competition in app UX or financial services.

“If such a structure is established, global funds will flow into the Korean market, becoming a catalyst for the growth of the virtual asset industry in Korea and a driving force for the industry to advance further.”