South Korea Ruling Party Plans Spot Crypto ETF Approval and Exchange Access Reform

Highlights:

• South Korea’s ruling party plans to allow spot crypto ETF trading before the end of this year.
• The party will remove the one exchange one bank rule to give investors more banking choices.
• Over 3,000 firms may trade crypto if the People Power Party wins the June election.

South Korea’s ruling People Power Party has announced a series of digital asset measures it plans to implement before the end of the year. The announcement follows the impeachment of President Yoon Suk Yeol for declaring martial law, which has led to a highly contested snap election set for June 3. The party wants to reshape the country’s digital asset structure by expanding access and introducing new financial products.

JUST IN: 🇰🇷 South Korea’s second largest party vows to approve spot #Bitcoin ETFs within a year.

Asia is getting prepared 🙌 pic.twitter.com/TNEqRVfFlr

— Bitcoin Magazine (@BitcoinMagazine) April 29, 2025

The party said it would approve spot exchange-traded funds for digital assets within the year. This move comes after the United States, the United Kingdom, and Hong Kong already gave the green light to similar investment tools. Representative Park Soo-min said Korea cannot afford to wait any longer and must provide more options to local investors. He pointed out that investors should be able to buy digital asset ETFs through the bank of their choice.

The new proposals include a plan to pass the Framework Act. This law will set rules for exchange operations, listing methods, and transaction reporting. These changes are designed to improve how the market works and provide more clarity for participants. The party also confirmed that spot crypto ETF trading for cryptocurrencies such as Bitcoin and Ethereum would begin within the year.

PPP to Remove Banking Restrictions in South Korea

The party also plans to remove the “one exchange, one bank” policy. This rule has forced exchanges to partner with only one bank at a time, which many say has reduced competition and limited user choice. According to Rep. Park Soo-min, this rule has made it hard for people to use the bank they prefer when trading digital assets.

The party explained that removing the rule would open up more options for both exchanges and investors. It believes this change will support a fairer market where businesses can compete more freely. Critics have long blamed the rule for making it harder for new exchanges to enter the space while strengthening the position of existing players.

To carry out these plans, the party will form a Virtual Asset Special Committee. This group will operate directly under the presidential office and will lead the effort to implement South Korea’s digital asset agenda.

Corporate Access and Stablecoin Measures to Follow

If the party wins the election, its plans will allow around 3,500 groups, including listed companies, non-profits, and investment firms, to start trading spot crypto ETFs from the second quarter of this year. The party will also put forward new measures for tokenized securities and stablecoins in South Korea. These new measures will align with practices followed in other countries and help form the legal basis for long-term digital asset use.

Hong Joon-pyo, the presidential candidate, said he plans to remove outdated limits and bring blockchain into public services. On the other hand, Democratic Party candidate Lee Jae Myung has focused on restoring democracy and stabilizing the economy. However, he has not revealed any particular plans for digital assets. Recent polls indicate that Lee is currently leading in the race.