- South Korea’s PPP plans to approve spot Bitcoin ETFs and reform crypto regulations by 2025.
- The party aims to abolish banking restrictions and establish a global standard for stablecoins.
- PPP proposes a Virtual Asset Special Committee and new laws for digital asset and STO regulation.
South Korea’s People Power Party (PPP) has announced a full package of regulatory changes to strengthen the country’s virtual asset ecosystem. During a Monday session at the National Assembly, party leaders introduced seven key initiatives, including plans to authorize spot Bitcoin exchange-traded funds (ETFs) before the end of this year. The announcement comes at a major time, as South Korea prepares for a presidential election scheduled for June 3.
The proposed changes reflect a broader push within the country to adapt to the growing role of digital assets in financial markets. PPP lawmakers emphasized that South Korea risks falling behind global trends in cryptocurrency adoption and regulation without prompt action.
One of the central proposals is the approval of spot Bitcoin ETFs for domestic trading. Rep. Park Soo-min referenced the success of U.S. spot Bitcoin ETFs, noting the trading volumes and investor interest they have generated since their launch. Park stressed that South Korea “cannot afford to delay any longer” and must move swiftly to remain competitive in the global financial landscape.
Currently, South Korea bans spot crypto ETFs, limiting investment options for domestic investors. The People Power Party and the opposition Democratic Party have previously voiced support for lifting the ban, but no action has been finalized.
Overhaul of Banking Restrictions and Stablecoin Oversight
The PPP also pledged to abolish the “one exchange, one bank” rule. Under this system, crypto exchanges were required to partner with a single financial institution to issue real-name verified accounts, a regulation intended to strengthen anti-money laundering efforts. Party leaders stated that removing this restriction would enhance competition and improve service access for crypto users.
Stablecoins are another main point of the reforms. Rep. Choi Bo-yoon confirmed that the PPP plans to introduce a “global standard” regulatory framework for stablecoins, aligning domestic regulations with international practices. This would ensure that stablecoins circulating in South Korea meet security, liquidity, and transparency requirements observed globally.
Creation of Special Committee and Legislative Action
In addition to regulatory reforms, the PPP seeks to establish a Virtual Asset Special Committee under the presidential office. The committee would oversee the rollout of digital asset policies and serve as a coordinating body for related government initiatives.
The party also outlined the strategies, including passing the Framework Act on Promoting Digital Assets. This legislation would provide a grounding for the exchange operations, outline procedures for listing digital assets, and impose reporting requirements for cryptocurrency transactions. The proposed system will fill the existing gap to increase transparency and protection for investors within the emerging Korean crypto market.
Another bill concerning STOs was prepared as well. Currently, this bill outlines proposals for the governing of tokenized securities, coming up with a stablecoin regime and a proper system that is compliant with international standards, enacting basic framework principles for digital asset handling, and coming up with a mechanism for taxing crypto assets.
