South Korea's People Power Party (PPP) Promises to Approve Spot Bitcoin ETFs

South Korea’s People Power Party (PPP) has announced a full package of regulatory changes to strengthen the country's virtual asset ecosystem.

People Power Party (PPP) leaders in South Korea have announced a seven-point package of regulatory changes to strengthen the country’s virtual asset ecosystem. The announcement was made during a Monday session at the National Assembly. Among the key initiatives is the approval of spot Bitcoin ETFs, which party officials hope to finalize before the end of this year.

South Korea’s second largest party vows to approve spot Bitcoin ETFs within a year. Asia is getting prepared 🙌

The proposed changes reflect a broader push within the country to adapt to the growing role of digital assets in financial markets. PPP lawmakers highlighted that without swift action, Korea risks lagging behind global trends in cryptocurrency adoption and regulation.

One of the central proposals is the approval of spot Bitcoin ETFs for domestic trading. Rep. Park Soo-min referenced the success of U.S. spot Bitcoin ETFs, highlighting the trading volumes and investor interest they have generated since their launch.

“We cannot afford to delay any longer. Let’s quickly approve BTC spot ETFs in Korea this year and move swiftly to remain competitive in the global financial landscape.”

Currently, South Korea bans spot crypto ETFs, limiting investment options for domestic investors. Both the People Power Party and the opposition Democratic Party have previously voiced support for lifting the ban, but no action has finalized yet.

The People Power Party also pledged to abolish the “one exchange, one bank” rule. Under this system, crypto exchanges were required to partner with a single financial institution to issue real-name verified accounts, a regulation intended to strengthen anti-money laundering efforts. Party leaders stated that removing this restriction would enhance competition and improve service access for crypto users.

Stablecoins are another main point of the reforms. Rep. Choi Bo-yoon confirmed that the PPP plans to introduce a “global standard” regulatory framework for stablecoins, aligning domestic regulations with international practices. This would ensure that stablecoins circulating in South Korea meet security, liquidity, and transparency requirements observed globally.

In addition to regulatory reforms, the PPP seeks to establish a Virtual Asset Special Committee under the presidential office. The committee would oversee the rollout of digital asset policies and serve as a coordinating body for related government initiatives.

The party also outlined the strategies, including passing the Framework Act on Promoting Digital Assets. This legislation would provide a grounding for the exchange operations, outline procedures for listing digital assets, and impose reporting requirements for cryptocurrency transactions. The proposed system will fill the existing gap to increase transparency and protection for investors within the emerging Korean crypto market.

Another bill concerning STOs was prepared as well. Currently, this bill outlines proposals for the governing of tokenized securities, coming up with a stablecoin regime and a proper system that is compliant with international standards, enacting basic framework principles for digital asset handling, and coming up with a mechanism for taxing crypto assets.