South Korea’s ruling party proposes spot crypto ETF transactions and banking reforms
With South Korea’s upcoming presidential election on June 3, the People’s Power Party (PPP) has launched a broad set of crypto policy recommendations aimed at reshaping the country’s digital asset market.
At a meeting in the National Assembly on Monday, the PPP outlined seven new initiatives, including removing key restrictions on banks working on cryptocurrency exchanges and introducing a legal framework to support the development of tokenized assets and spot exchange-traded funds (ETFs).
The proposals were proposed in the April Impotence and transitional political environment after the removal. As the election approaches, PPP’s policy hub for digital asset regulations appears to be a strategic move to attract the country’s growing population of crypto users and investors.
Historically, South Korea has maintained a strict supervision system for the cryptocurrency market, especially in response to past concerns about money laundering and speculative trade activities.
Crypto ETFs and Exchange Rules at the PPP Reform Planning Center
One of the most notable measures announced by the PPP is a plan to limit existing restrictions to limiting crypto exchanges to working with a bank to obtain accounts with a real name verified.
Financial authorities initially introduced the “one exchange, one bank” rule to increase transparency and monitor suspicious financial activity. However, critics argue that the rule limits competition, while new or smaller crypto exchanges have limited access to banking.
In addition, PPP has promised to legalize the transactions of spot crypto ETFs in South Korea. Party MP Park SOO-MIN pointed out at the meeting that the discovery of Bitcoin ETFs in the United States has attracted a lot of attention and trading volume.
According to Park, South Korea’s ongoing delays in approving such products could put it at a competitive disadvantage in the rapidly growing global digital asset space. While both the PPP and the Democrats have previously expressed interest in lifting the ETF ban, this marks the clearest commitment PPP has so far.
Regulatory commitments include Stablecoin framework and security tokens
The policy roadmap also includes plans to create a legal framework for the Security Token Products (STOS) and to develop comprehensive guidelines for issuing and regulating Stablecoins.
Party officials said the purpose is to meet global standards and provide regulatory clarity to issuers and investors. These efforts will be introduced by introducing the Basic Law on Digital Assets Promotion, which aims to formalize the country’s long-term crypto policy.
To oversee these initiatives, PPP plans to set up a dedicated crypto policy committee under its presidential candidate.
The committee will focus on encouraging responsible innovation, supporting the domestic crypto industry, and restoring investor confidence after a period of regulatory scrutiny.
Given that all of this is at work, South Korea’s position in the global digital asset market could be significantly affected, depending on the outcome of the June election and these subsequent policy changes.
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