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

Korea’s cryptocurrency industry is weighing the prospect of regulatory relief following the sudden resignation of presidential chief of staff for policy Kim Yong-beom, who had aggressively pushed to curb major shareholder dominance in local crypto exchanges, industry officials said Thursday.

Kim submitted his resignation Monday amid continued criticism that single-stock leveraged exchange-traded funds (ETFs) introduced in May under his leadership have been contributing to heightened stock market volatility. President Lee Jae Myung accepted his resignation Tuesday, with no successor named yet.

Kim, a former senior financial bureaucrat who previously headed the crypto think tank Hashed Open Research, was initially expected to foster pro-industry regulations upon taking office in June 2025. Instead, his tenure saw a push to cap major exchange shareholders’ equity at 20 percent, which would force founders to sell their excess stakes.

The industry, which believed Kim played a significant role in shaping the regulation, has mounted fierce opposition to the proposed equity cap, arguing that forcing major shareholders to sell their stakes would violate property rights, undermine management stability and hamper investment.