In Brief:
- South Korea’s ruling party pledges to approve spot crypto ETFs later this year
- The party also vowed to dislodge the “one exchange, one bank” rule
- Election outcomes could decide the fate of proposed reforms
South Korea’s People Power Party pledges to approve spot crypto ETFs and dislodge the “one exchange, one bank” rule before the end of 2025. Local media reported the development on Monday, weeks after political turmoil jarred the country’s landscape ahead of the June 3 elections.
South Korean ruling party seeks political points with spot crypto ETFs
Earlier in the year, the country’s impeached president, Yoon Suk Yeol, was removed from office for illegally imposing martial law, significantly impacting the party’s outlook. However, the party seems to push its narrative as a more liberal organization by promising to deregulate the crypto sector and approve spot crypto ETFs.
The PPP’s promises include eliminating the “one exchange, one bank” rule, which restricts crypto exchanges to a single banking partner. The crypto community has blamed the regulation for limiting consumer choice and elevating monopolies.
Rep. Park Soo-min announced the plan on Monday during an emergency response committee meeting. “It is very restrictive not to be able to trade virtual assets through the bank of your choice,” he asserted.
The ruling party also vowed to approve spot crypto ETFs before the end of 2025. Referencing the approval of spot Bitcoin ETFs by America’s pro-crypto economy, Park emphasized the urgency of permitting spot crypto ETFs in the Asian nation.
The PPP announced plans to institutionalize corporate and institutional investor participation in the virtual assets industry later this year. Should the PPP win the June national elections, beginning in Q2, non-profit organizations can trade in cryptocurrencies.
Similarly, a larger network of about 3,500 corporations and investment firms can trade the nascent asset class, creating a more accessible and competitive crypto industry.
