South Korea’s ruling People Power Party (PPP) has unveiled a sweeping set of crypto reforms, including the approval of spot cryptocurrency exchange-traded funds (ETFs) and a revamp of the nation’s digital asset framework.
The announcement was made during an emergency response committee meeting on Monday, 28 April 2025. This comes amid heightened political tensions following the recent impeachment and removal of President Yoon Suk Yeol over his illegal imposition of martial law.
The fallout has set the stage for a snap presidential election on June 3, with crypto policy emerging as a key campaign issue.
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Ruling Party Pledges To Legalize Spot Crypto ETFs
A centerpiece of the PPP’s pledge is the legalization of spot crypto ETFs—a move aimed at aligning South Korea with global financial markets.
Citing the U.S. Securities and Exchange Commission’s decision in January to approve spot Bitcoin ETFs, lawmaker Park Soo-min emphasized the urgency of keeping pace with international regulatory developments.
Alongside the ETF push, the party also committed to dismantling the “one exchange, one bank” regulation, which currently limits cryptocurrency exchanges to a single banking partner.
Critics argue that this policy has stifled competition and consumer choice in the country’s fast-growing digital asset market. “It is very restrictive not to be able to trade virtual assets through the bank of your choice,” Park said during the session at the National Assembly.
Further proposals include expanding access to crypto markets for institutional players. Should the PPP retain power, its plan would allow nonprofit organizations to trade digital assets starting in the second quarter.
South Korea’s People Power Party vows to abolish the ‘one exchange, one bank’ policy and approve Bitcoin spot ETFs in 2025 if it wins the June 3 election, local news reported. pic.twitter.com/7zYwgFP4eR
— Coin Bureau (@coinbureau) April 29, 2025
In a bid to bring clarity and confidence to the market, the PPP has also proposed the establishment of a Virtual Asset Special Committee under the presidential office.
This body would oversee implementation of a new regulatory regime, including the Framework Act on the Promotion of Digital Assets. The proposed law would introduce clearer rules for exchange operations, asset listings, and transaction disclosures.
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PPP To Implement Regulatory System For Stablecoins
Representative Choi Bo-yoon noted that the PPP aims to implement a regulatory system for stablecoins based on global standards, enhancing transparency and investor protection.
The party’s platform echoes recent deregulatory trends in the United States, where former President Donald Trump advocated for the rollback of DeFi broker rules and integration of crypto into national financial strategies.
PPP presidential candidate Hong Joon-pyo has embraced a similar stance, pledging to reduce regulatory barriers and expand blockchain use in public services.
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Key Takeaways
- South Korea’s ruling party pledges to legalize spot crypto ETFs and dismantle restrictive banking rules for exchanges.
- The proposed reforms include creating a Virtual Asset Special Committee to oversee a new digital asset regulatory framework.
- Plans also call for a global-standard regulatory system for stablecoins and broader institutional access to crypto markets.
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