The People Power Party (PPP), a prominent political party in South Korea, has announced plans to boost the country’s crypto industry by allowing companies and institutions to access the virtual asset market and trade spot crypto exchange-traded funds (ETFs), according to a local news report. In a committee meeting at the National Assembly, the party proposed a seven-point plan that will foster a digital virtual asset ecosystem and promote competition among exchanges.
First on the list will be the abolition of the ‘one exchange, one bank’ principle. The rule requires crypto exchanges to partner with a single bank for real-name verified accounts.
According to Rep. Park Soo-min, this principle will be scrapped as it restricts trading and solidifies the monopoly of specific exchanges. Thus, giving exchanges more freedom to operate and fostering a competitive market.
South Korea’s PPP Rolls Out 7 Strategies to Boost Crypto
Following the abolition of the ”one exchange, one bank” principle, the PPP also plans to allow institutional investors to trade spot crypto ETFs within the year. Citing the success of Bitcoin spot ETFs in the US, Rep. Park stated that Hong Kong and the UK have followed suit in approving such products.
In a translated version of the report, he added,
”We will not allow the authorities’ outdated regulations to hinder the growth of virtual assets that can help finance grow… The People Power Party will open the door to virtual asset spot ETF trading within this year.”
The party’s plan also includes allowing corporate and institutional investment in crypto assets, legalizing security token offerings, and introducing a globally acceptable regulatory framework for stablecoins. The proposal also aims to create a basic law to boost crypto assets and also establish a taxation system, according to Rep. Choi Bo-yoon.
To implement these plans, the party will establish a special committee directly under the party’s presidential candidate to oversee the implementation of these initiatives.
South Korea’s Efforts to Shape the Crypto Space
In a similar development, South Korea’s financial body, the Financial Services Commission (FSC), revealed its plans to review its ban on crypto ETFs. The move signaled a potential shift towards crypto-friendly policies.
The government also recently announced its plans to allow institutions like universities and local governments to receive crypto donations.
