Catenaa, Friday, May 09, 2025-South Korea ruling People Power Party has pledged to legalize spot crypto exchange-traded fund trading and broaden banking access for crypto exchanges by year’s end, marking a high-stakes play for digital asset voters ahead of the June 3 presidential election.
The conservative party outlined seven crypto-focused initiatives during a meeting last week at the National Assembly, local media reported. Key proposals include scrapping the “one exchange, one bank” rule, which limits exchanges to single-bank partnerships for real-name verified accounts — a measure originally designed to combat money laundering.
Party lawmaker Park Soo-min said demand for digital asset exposure through spot ETFs is rising, citing the popularity of US bitcoin ETFs.
“South Korea cannot afford to delay any longer,” Park said.
The announcement follows the ouster of President Yoon Suk-yeol, who was removed from office April 4 after the Constitutional Court upheld his impeachment tied to a controversial martial law threat.
The PPP is now looking to regain political momentum by courting crypto-savvy voters.
Additional measures include legalizing security token offerings, drafting a regulatory framework for stablecoins aligned with international standards, and proposing a Digital Asset Promotion Basic Act.
The Financial Services Commission has also signaled a regulatory thaw, indicating plans to lift investment bans for institutional investors and pursue secondary legislation on token listings and stablecoins.
