South Korea’s Ruling Party Vows to Approve Spot Crypto ETFs, Scrap Key Banking Rule

South Korea’s People Power Party has vowed to approve spot crypto ETFs, dismantle a major banking restriction, and overhaul digital asset laws before the end of the year, local media reported Monday.

The party revealed its digital asset pledge just weeks after the country’s impeached president, Yoon Suk Yeol, was removed from office for illegally imposing martial law, a political shock that has formed the basis for a fiercely contested snap election on June 3. 

The PPP’s proposals include abolishing the “one exchange, one bank” rule, which restricts crypto exchanges to a single banking partner —a regulation blamed for entrenching monopolies and limiting consumer choice.

“It is very restrictive not to be able to trade virtual assets through the bank of your choice,” Rep. Park Soo-min said on Monday during the emergency response committee meeting held at the National Assembly.

The PPP has also pledged to legalize spot crypto ETFs within the year. Park stressed the urgency of approval, pointing to the U.S. Securities and Exchange Commission’s (SEC) decision to greenlight spot Bitcoin ETFs last January.

In addition, the party said in its agenda that it would also institutionalize corporate and institutional investor participation in the crypto market within this year.

If PPP wins, starting in Q2, non-profits can engage in crypto trading, with broader participation from around 3,500 corporations and investment firms.

‘Golden standard’

During the committee meeting, Rep. Choi Bo-yoon said that PPP also plans to introduce a “global standard” regulatory system for stablecoins, local media reported.

To oversee the implementation of its digital asset agenda, the party seeks to establish a Virtual Asset Special Committee directly under the presidential office.

The PPP has vowed to enact the Framework Act on the Promotion of Digital Assets, which would subdivide exchange operations, create listing regulations, and introduce a disclosure system for digital asset transactions.

The party’s push aligns with a global shift toward crypto deregulation, triggered by U.S. President Donald Trump’s moves to repeal DeFi broker reporting rules, authorize the creation of a national Bitcoin stockpile, and place crypto as a core element of American financial policy.

Invoking Trump-era deregulation, PPP presidential candidate Hong Joon-pyo recently vowed to “eliminate regulations as much as the Trump administration did” and pledged to expand blockchain applications across South Korean public services.

Still, whether the PPP’s agenda can move forward will depend on the election outcome. 

Democratic Party candidate Lee Jae-myung has campaigned on restoring democratic norms and stabilizing the economy, but has offered few specifics about his stance on regulating digital assets.

Current polling shows Lee, who narrowly lost the 2022 race, now holding a commanding lead over his rivals, according to local media.

Edited by Sebastian Sinclair