South Korea Set to Take Major Steps in the Digital Asset Space
Ahead of the early presidential elections scheduled for June 3, the ruling People Power Party (PPP) has unveiled reform plans aimed at energizing the crypto market.
Single Bank Requirement to Be Removed
The PPP intends to remove the current rule that allows crypto exchanges to operate with only one bank.The new regulation would enable exchanges to partner with multiple banks, a move expected to increase investor access and boost competition.
Legal Framework for Spot Crypto ETFs
One of the most notable pledges: Spot Bitcoin and altcoin ETFs are expected to become legally approved within this year.The PPP argues that such products would offer a safe entry point for institutional investors.Citing the growing interest in the U.S., the party believes South Korea must not fall further behind in this area.
Digital Assets Promotion Act in the Works
The PPP also plans to introduce a new legislative framework titled the “Basic Act for the Promotion of Digital Assets.”Key goals include:
- Clarifying listing criteria
- Strengthening transparency regulations
- Creating a legal foundation for security tokens (STOs)
- Ensuring international compliance for stablecoins
A special Digital Assets Committee, directly reporting to the president, is also under consideration to oversee the entire process.
Crypto Policies Take Center Stage in Election Campaign
PPP’s presidential candidate Hong Joon-pyo is campaigning on a promise to liberalize crypto regulations.He drew attention with his statement: “We will roll back regulations just like the Trump administration did.”Crypto is now not only an economic issue but a central theme in the broader political message.
Parallel Announcements from Regulators
The Financial Services Commission (FSC) is also preparing new regulations.In January, it was announced that restrictions on institutional investors' crypto activities would be eased.The upcoming regulations will cover areas such as stablecoins, listing rules, and market transparency.
Digital Transformation to Be Shaped by Election Outcome
South Korea is entering a new phase in crypto reform.With spot ETFs, flexible banking rules, and legal frameworks, the country could become one of Asia’s leading crypto hubs.However, the future of this transformation hinges on the election outcome.If the PPP wins, reforms could be implemented rapidly — the opposition’s stance, however, remains unclear.
