In a significant move ahead of the presidential elections, South Korea is setting its sights on the cryptocurrency landscape with ambitious regulatory reforms. The ruling People Power Party (PPP) has unveiled a comprehensive strategy aimed at revitalizing the crypto market, promising substantial adjustments to how exchanges operate and their access to banking services.
What Changes Are Coming to Banking Rules?
During a recent parliamentary session, the PPP outlined a visionary plan consisting of seven key points for the cryptocurrency sector. A major highlight is the decision to abolish the controversial “one exchange, one bank” rule. This regulation has been criticized for limiting crypto exchanges to partnerships with a single bank and requiring real-name transaction processes to combat money laundering.
Will Crypto ETFs Launch Soon?
By repealing this restrictive rule, the PPP aims to enhance exchanges’ banking options, potentially leading to increased competition and reduced transaction costs. This initiative has garnered positive feedback from market participants and stakeholders, reflecting the party’s strategy to engage with younger voters in the lead-up to the elections.
Another pivotal agenda item for the PPP includes the introduction of spot cryptocurrency exchange-traded funds (ETFs). Party representatives have emphasized the urgent need for South Korea to follow the U.S. in allowing these financial products to facilitate safer trading for individual and institutional investors.
In addition to relaxing ETF regulations, the PPP has plans to legalize security token offerings (STOs) and establish stablecoin regulations that align with international standards. They are also working on a legislative initiative entitled “Fundamental Law to Promote Digital Assets.” This law aims to create a special cryptocurrency committee to oversee sector developments and bolster investor confidence.
- The removal of the “one exchange, one bank” rule is expected to increase banking access for exchanges.
- Spot crypto ETFs may soon be permitted, improving market access for various investors.
- Legal frameworks are being developed to support security token offerings and stablecoins.
- A dedicated cryptocurrency committee will aim to rebuild trust and drive innovation in the sector.
As these regulatory changes unfold, South Korea’s financial authorities are also evolving. Earlier this year, they began easing restrictions on institutional investment in cryptocurrencies and are currently drafting new legal structures to further support the burgeoning crypto environment.
