South Korea's ruling party has announced intentions to legalize spot crypto ETFs and improve banking access, initiating active debates on crypto policy.
Support for Spot Crypto ETFs
The ruling People Power Party of South Korea confirmed its plans to legalize spot crypto ETF trading. This decision comes in light of global trends in cryptocurrencies and follows the impeachment of President Yoon Suk-yeol in April 2025.
Leadership Changes and Their Consequences
The impeachment of President Yoon has invigorated both major political parties to advocate for crypto policies. The People Power Party, led by Representative Park Soo-min, plans to flatten barriers by adjusting the restrictive 'one exchange, one bank' rule.
Impact on the Financial Sector
Immediate impacts are expected in the banking and digital asset sectors, facilitating greater competition and exchange efficiency. The PPP's proposal could pave the way for dynamic shifts in Korea's financial landscape, similar to international precedents that show increased centralized exchange volumes and institutional interest.
The People Power Party's policies are expected to modernize South Korea's crypto landscape, increasing capital inflows and market participation.
