Quorium (qgold) 
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South Korea Moves to Reform Its Virtual Asset Ecosystem
South Korea’s People Power Party has unveiled seven significant legislative changes aimed at enhancing the country’s virtual asset ecosystem. One of the most notable developments is the plan to launch a spot Bitcoin ETF before the end of the year.
Spot Bitcoin ETFs Coming to South Korea
According to a recent announcement, the ruling party revealed that trading for digital asset spot ETFs will be permitted this year. This marks a major milestone for South Korean investors, as it will allow them to invest in exchange-traded funds linked to leading cryptocurrencies such as Bitcoin and Ethereum.
Representative Park Soo-min emphasized the urgency of introducing crypto-backed ETFs, citing progress in other nations such as the United States, Hong Kong, and the United Kingdom.
“Hong Kong and the U.K. have also approved spot ETF trading in succession. Korea has no time to delay,” said Park.
Regulatory Changes to Boost Institutional Participation
These ETF plans are part of broader regulatory reforms proposed by the People Power Party to accelerate the growth of the crypto industry in South Korea. Starting from the second quarter of this year, companies will be able to trade in digital assets without previous constraints.
The ruling party also announced that 3,500 corporations and institutions, including 2,500 large-scale listed companies and 1,000 professional investment firms, will be institutionalized within 2023. This move aims to eliminate restrictions and encourage active participation in the crypto market.
Abolishment of “One Crypto Exchange, One Bank” Policy
Another key reform is the abolishment of the restrictive “One Crypto Exchange, One Bank” policy. Previously, crypto exchanges in South Korea were required to partner with only one bank for regulatory oversight. While this policy was designed to prevent financial crimes like money laundering, it proved to be a significant obstacle for exchanges seeking to diversify their banking relationships.
The government acknowledged the limitations of this policy and is now working towards more flexible banking partnerships to support the growth of crypto exchanges.
Introduction of Token Securities and Stablecoin Regulations
The People Power Party also announced plans to establish a token securities STO bill. This legislation will include stablecoin regulations aligned with global standards, as well as foundational laws to improve the digital asset market. Additionally, the party is proposing a new taxation system tailored for cryptocurrencies.
Rep. Park emphasized the importance of modernizing regulations to foster innovation in the crypto sector.
“We will not allow the authorities’ outdated regulations to hinder the growth of virtual assets that can help finance grow,” said Park.
Formation of a Virtual Asset Committee
To implement these changes effectively, the People Power Party plans to form a special committee on virtual assets. This committee, operating directly under the party’s presidential candidate, will focus on institutionalizing virtual assets and laying the groundwork for industrial innovation within the crypto landscape.
Rising Interest in Crypto Investments Among South Koreans
According to recent data, young South Korean investors are increasingly turning to cryptocurrency as a preferred investment option. A report by Hana Bank revealed that over 30% of South Korea’s wealthy investors favor crypto for long-term investments, surpassing traditional assets like gold and property.
This growing interest highlights the potential for cryptocurrencies to play a significant role in the nation’s financial future, further validating the government’s push for regulatory reform and market expansion.
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