South Korea's Ruling Party Vows to Approve Spot Crypto ETFs, Scrap Key Banking Rule
South Korea’s People Power Party (PPP) plans to approve spot crypto ETFs, dismantle the "one exchange, one bank" rule, and overhaul digital asset laws by year-end. This initiative follows the impeachment of former president Yoon Suk Yeol and precedes a snap election on June 3. The PPP aims to enhance consumer choice by allowing multiple banking partners for crypto exchanges. The party also intends to legalize spot crypto ETFs, citing the U.S. SEC's approval of Bitcoin ETFs as a catalyst. Additionally, the PPP seeks to enable corporate and institutional investor participation in crypto trading and establish a "global standard" regulatory system for stablecoins. A Virtual Asset Special Committee will be formed under the presidential office to oversee these changes. The proposed Framework Act on the Promotion of Digital Assets will regulate exchange operations and transactions. The PPP's agenda aligns with global crypto deregulation trends, influenced by U.S. policies. Election outcomes will determine the feasibility of these proposals, with Democratic candidate Lee Jae-myung leading in polls but offering limited details on digital asset regulation.
