South Korea’s People Power Party has committed to approving spot crypto ETFs and eliminating the country’s “one exchange, one bank” policy if they secure victory. The party’s cryptocurrency agenda encompasses corporate crypto trading, stablecoin regulations, and the establishment of a new Virtual Asset Special Committee this year. The outcome of the election may determine the success of these reforms, with opposition leader Lee Jae-myung currently leading in the polls ahead of the vote on June 3.
According to local media reports from Monday, South Korea’s People Power Party has pledged to approve spot crypto ETFs, dismantle a significant banking restriction, and reform digital asset regulations by the year’s end.
This digital asset commitment came shortly after the impeachment of the nation’s former president, Yoon Suk Yeol, who was removed from office for unlawfully imposing martial law, setting the stage for a contentious snap election on June 3.
The PPP also aims to abolish the “one exchange, one bank” rule, which limits crypto exchanges to a single banking partner. This regulation has been criticized for fostering monopolies and reducing consumer options.
“Being restricted from trading virtual assets with your preferred bank is very limiting,” remarked Rep. Park Soo-min on Monday during an emergency committee meeting at the National Assembly.
The PPP has also promised to legalize spot crypto ETFs within the year. Park emphasized the need for swift approval, pointing to the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs last January.
Furthermore, the party’s agenda includes facilitating corporate and institutional investor engagement in the crypto market this year.
If PPP emerges victorious, non-profits could begin crypto trading in Q2, allowing around 3,500 corporations and investment firms to join.
‘Global Benchmark’
During the committee meeting, Rep. Choi Bo-yoon indicated that the PPP also intends to establish a “global standard” regulatory framework for stablecoins, as reported by local media.
To ensure the implementation of its digital asset agenda, the party aims to create a Virtual Asset Special Committee directly under the presidential office.
The PPP has committed to enacting the Framework Act on the Promotion of Digital Assets, which will delineate exchange operations, establish listing regulations, and introduce a transparency system for digital asset transactions.
This initiative aligns with a global trend toward crypto deregulation, following U.S. President Donald Trump’s actions to repeal DeFi broker reporting requirements, create a national Bitcoin reserve, and position crypto as a key component of American financial policy.
Citing Trump-era deregulation, PPP presidential candidate Hong Joon-pyo recently promised to “reduce regulations as significantly as the Trump administration did” and to broaden blockchain applications across South Korean public services.
However, the progression of the PPP’s agenda remains contingent on the election results.
Democratic Party candidate Lee Jae-myung has campaigned for the restoration of democratic values and economic stability, but has provided limited details regarding his position on digital asset regulation.
Current polling indicates Lee, who narrowly lost in the 2022 election, is currently ahead of his competitors, according to local news sources.
Edited by Sebastian Sinclair
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