The People Power Party announced its pledges on the 28th regarding digital virtual assets

The People Power Party (PPP) announced its pledges on the 28th regarding digital virtual assets, which are of great interest to the 2030 generation, including the abolition of the one exchange, one bank principle and the allowance of virtual asset exchange-traded funds (ETFs).

People Power Party lawmakers Park Soo-min and Choi Bo-yoon stated during a morning emergency committee meeting that “the People Power Party promises seven key initiatives to foster South Korea’s digital asset industry ecosystem under the goal of becoming a global digital asset market G2.”

To this end, it was noted that the establishment of a special committee on virtual assets directly under the presidential candidate will also be pursued.

The seven key initiatives include △ abolition of the one exchange, one bank principle △ institutionalization of virtual asset transactions for corporations and institutional investors △ introduction of virtual asset spot exchange-traded funds (ETFs) △ legalization of security token offerings (STOs) △ establishment of regulatory frameworks for stablecoins △ enactment of a basic law for fostering digital assets △ introduction of an innovative taxation system for virtual assets and establishment of related systems.

The one exchange, one bank principle was a regulation introduced to prevent financial crimes such as money laundering and to detect unusual transactions through real-name verified deposit and withdrawal accounts.

However, it was pointed out that the limited options for transactions with preferred banks and the concentration of bank partnership requests to specific exchanges solidified the monopolistic and oligopolistic nature of the virtual asset transaction market.

Representative Park said, “We will boldly abolish the one exchange, one bank system and open a reasonable era where one can access various exchanges through the bank of their choice, and encourage vitality through competition among exchanges.”

It was also stated that the virtual asset spot ETF trading, which started in January in U.S. stock exchanges, has been approved in the United Kingdom and Hong Kong, and “we will ensure that trading is possible in South Korea within this year.”

The People Power Party also promised to institutionalize that non-profit organization transactions related to virtual asset investments will be allowed starting in the second quarter of this year, allowing a total of 3,500 corporations and institutions, including 2,500 listed companies and 1,000 specialized investment firms, to participate in the market without restrictions within this year.

In addition, to ensure the safety of investments, proactive steps will be taken toward the legalization of security tokens.

Regarding stablecoins tied to assets of different values, it was decided to clearly define issuer requirements and set standards for reserve assets and collateral, as well as establish regulations for operations. A system to protect users will also be established.

Along with this, it was promised to promote the advancement of the digital asset market through the enactment of a basic law for fostering digital assets and to establish an innovative tax system reflecting the reality that many investors are small-scale investors.

Chairman Choi said, “Through the seven key pledges, the People Power Party aims to propel South Korea into a leading global country for digital assets and establish it as a global virtual asset hub.”