In South Korea, Bitcoin is officially recognized as a major investment instrument, reflecting the pro-crypto agenda of President Lee Jae-myung, who has gained momentum since taking office in June 2025. Just a week prior, the government lifted its ban on crypto companies seeking venture business status, allowing them tax exemptions and access to state-supported financial programs.
Legislation Expected Before Year-End
The government aims to pass pro-Bitcoin legislation by December 31, 2025. Although ambitious, the timeline is feasible: with roughly 98 days remaining, lawmakers could review pre-drafted bills or hold emergency sessions to approve the laws. The new legislation is expected to clarify rules on custody, trading, taxation, and investor protection.
Market Reaction and Adoption
The announcement immediately boosted local market activity. Trading volumes at exchanges like Upbit and Bithumb rose over 25% in the past week, while Bitcoin recovered about 15%, trading around $68,000 as of September 24, 2025. Analysts anticipate that with the adoption of pro-BTC laws, prices could test the $80,000 mark. The Kimchi Premium—the premium on Bitcoin in South Korea compared to global markets—may rise again as domestic demand strengthens.
Boosting Bitcoin’s Financial Credibility
By classifying Bitcoin alongside stocks and bonds, South Korea is giving the cryptocurrency credibility within conventional finance. This opens the door for:
- Controlled Bitcoin ETFs under the Financial Services Commission
- Tax incentives for BTC-related activities
- Increased transparency for institutional capital inflows
The move mirrors Japan’s 2017 decision to legalize crypto as legal tender, but South Korea goes further by positioning Bitcoin as a financial asset rather than merely a payment method.
