South Korea’s People Power Party Push for Bitcoin ETF Legislation Ahead of Elections

The People Power Party in South Korea seeks to advance Bitcoin ETF legislation and broader digital asset policies ahead of the June 3 elections. The changes aim to enhance transparency, deregulate the cryptocurrency market, and align with global standards. This may hinge on election outcomes, with Lee Jae-myung currently leading in the polls.

The People Power Party (PPP), currently leading in South Korea, has unveiled an ambitious agenda focused on digital assets ahead of the elections on June 3. The political backdrop, clouded by President Yoon Suk Yeol’s controversial martial law decision, has prompted the party to seek a revamp of the country’s approach to cryptocurrencies.

Central to the PPP’s strategy is the legislation to introduce spot Bitcoin ETFs, which they believe is overdue, particularly following the U.S. SEC’s green light earlier this year. Party leaders stress the need to adapt to global market trends and encourage institutional interest in the burgeoning digital economy.

Reportedly, the new policy aims to dismantle the current limitation enforcing cryptocurrency exchanges to partner with just one bank. While the PPP advocates these deregulation efforts as beneficial, critics are quick to point out potential downsides, such as increased market dominance and fewer choices for consumers.

In addition, the party plans to create a global standard framework for stablecoins alongside the Framework Act on the Promotion of Digital Assets. This legislation would provide clear guidelines for exchange transactions, set listing requirements, and impose disclosure obligations to boost market transparency and protect investors.

They are also looking to grant legal trading privileges to around 3,500 non-profits, firms, and investment companies by year’s end. A Virtual Asset Special Committee will be established under the presidential office to oversee the implementation of these initiatives.

Interestingly, the PPP’s proposals mirror regulatory shifts in the U.S. endorsed by Donald Trump, who supports looser crypto policies. Presidential candidate Hong Joon-pyo aims to roll back regulation and integrate blockchain into public services.

However, the fate of these initiatives hangs in the balance as the election approaches. Current polls show that Australian businessman Lee Jae-myung is leading, while Hong Joon-pyo’s campaign focuses on restoring democracy and economic stability, leaving digital assets somewhat vague.

Ultimately, the upcoming election will significantly influence the future landscape of cryptocurrency in South Korea.