Trump's 'Pro-Crypto' Policy Stance

U.S. Focuses on Growing 'Domestic Coin Companies' South Korea Discriminates Against 'Domestic Coin Companies' Due to Regulatory Concerns

While the U.S. government focuses on supporting domestic cryptocurrency companies, South Korea's regulatory concerns lead to discrimination against 'Kimchi Coins' (coins associated with domestic companies or Koreans). As a result, Korean companies and individuals are quietly conducting business overseas due to the urgent need for regulatory reform to prevent talent and capital outflows.

In the Korean market, which boasts the world's highest cryptocurrency trading volume, a distorted trend continues where trading support is primarily provided for coins created by foreigners. The main reason for this is that domestic exchanges are avoiding listing Kimchi Coins due to regulatory concerns.

As a result, most domestic companies establish corporations overseas, pay taxes abroad, and continue their cryptocurrency business on foreign exchanges. Ironically, the negative stance of the authorities on the cryptocurrency market is accelerating the outflow of domestic capital and fattening the wallets of foreign coin entrepreneurs.

This is contrary to the U.S., where President Donald Trump is leading efforts to support domestic cryptocurrency companies, and there are concerns that if this policy stance continues, the domestic cryptocurrency industry may quickly lose its competitiveness.

In the U.S., which is leading the cryptocurrency market, there is a trend of supporting U.S.-based cryptocurrency companies following President Trump's 'America First' policy since his inauguration.

For example, at President Trump's inauguration dinner, Ripple's CEO Brad Garlinghouse and CLO Stuart Alderoty were invited to speak directly with Vice President-elect James David Vance.

President Trump and Melania Trump launched their official meme coins, 'Official Trump' and 'Melania Coin,' on the U.S.-issued cryptocurrency 'Solana,' and major U.S. exchanges like Coinbase and Kraken listed them immediately upon release.

In addition, in the U.S., cryptocurrency-based ETFs launched by the world's largest asset manager, Black Rock, are actively traded, and corporate investments are allowed. Nasdaq-listed company Strategy and NYSE-listed company KULR Technology Group are using idle cash to purchase Bitcoin.

In contrast, in South Korea, companies dealing with cryptocurrencies are often treated like 'criminals' and frequently denied the opening of bank accounts. Corporate issuance or investment in cryptocurrencies is also impossible. As a result, industry insiders are conducting their cryptocurrency business overseas. Thanks to personal interest, the cryptocurrency trading volume of Korean individual investors is at the world's top level, but due to the authorities' policy stance, Kimchi Coins are being discriminated against, and most of the liquidity benefits are going to foreign coins.

Junhyun Kang, a member of the Democratic Party of Korea, explained, "President Trump is expressing his will to make the cryptocurrency industry a core growth engine of the national economy under the banner of making America the 'crypto capital.' He is actively pursuing pro-crypto policies, such as stockpiling Bitcoin as a strategic reserve asset and establishing a cryptocurrency advisory committee under the presidential office."

Kang pointed out, "In contrast, in South Korea, it has become difficult to engage in cryptocurrency-related businesses, leading companies to mainly establish corporations overseas and create employment and added value there. Also, financial companies and corporations cannot enter the cryptocurrency market, leading to growth centered on individual investors, among other criticisms."

Junseok Lee, a member of the Reform New Party, criticized, "At one time, South Korea was a key country in the cryptocurrency industry, but some media and politicians dismissed the potential of the cryptocurrency industry as speculation, causing South Korea to lose its status as a key country. The mainstream regulation focuses on suppressing risk factors rather than supporting innovative industries, which is a big problem."

He added, "Due to government regulations, reverse discrimination against domestic cryptocurrency companies has occurred, lowering the competitiveness of the industry itself. Furthermore, domestic projects (cryptocurrency-related companies and personnel) are being driven overseas, resulting in the outflow of talent and capital. As the global cryptocurrency industry has become part of national competitiveness, we can no longer leave the 'reverse discrimination' situation unattended."

Jaeseop Kim, a member of the People Power Party, emphasized, "South Korea also needs in-depth discussions to align policy speed with the U.S. and establish a systematic cryptocurrency system that meets global standards."

Andrei Grachev, founder of the overseas cryptocurrency market maker DWF Labs, sparked controversy among domestic investors last year by posting "Kimchi hehehe" on his X (formerly Twitter). This was a mockery implying that the Korean market absorbs all the dumping volumes of foreign investors.

Arthur Hayes, founder of BitMEX, also openly expressed this perception. When the price of Ethereum (ENA) he held stopped rising, he mentioned on his X, "The price of Ethereum is plummeting, but it's okay. The Koreans haven't entered the market yet. When will the Kimchi (Koreans) come?"

To foreign cryptocurrency company officials, the Korean market is perceived as an 'easy liquidity vending machine.' In contrast, to Korean cryptocurrency company officials, the Korean market is perceived as an