Presidential policy chief's exit fuels hopes for softer crypto regulation

Korea's cryptocurrency industry is experiencing a potential shift towards less stringent regulation following the unexpected departure of presidential chief of staff for policy, Kim Yong-beom. Kim's resignation, announced on Monday, came after persistent criticism that the major shareholder dominance in local crypto exchanges, initiated under his leadership, was exacerbating stock market volatility. Despite no immediate successor being named, President Lee Jae Myung accepted Kim's resignation on Tuesday.

Notably, Kim, a former senior financial bureaucrat and erstwhile leader of the crypto think tank Hashed Open Research, was positioned to champion pro-industry regulations when he assumed his role in June 2025. However, his approach instead led to the introduction of a cap on major exchange shareholders' equity, limiting founders to a maximum of 20 percent. This move prompted resistance from the industry, which argued that such a policy could hinder the sector's growth.

Kim's tenure has been marked by a notable pushback against the proposed equity cap, with industry officials contending that the regulation would stifle innovation and market development. As the industry weighs the implications of Kim's exit, there now exists a glimmer of optimism regarding the prospects of softer cryptocurrency regulation in Korea.