South Korea’s Ruling Party Pledges Spot Crypto ETF Approval By Year-End

South Korea’s ruling People Power Party (PPP) has unveiled a sweeping set of crypto reforms, including the approval of spot cryptocurrency exchange-traded funds (ETFs) and a revamp of the nation’s digital asset framework.

The announcement was made during an emergency response committee meeting on Monday, 28 April 2025. This comes amid heightened political tensions following the recent impeachment and removal of President Yoon Suk Yeol over his illegal imposition of martial law.

The fallout has set the stage for a snap presidential election on June 3, with crypto policy emerging as a key campaign issue.

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Ruling Party Pledges To Legalize Spot Crypto ETFs

A centerpiece of the PPP’s pledge is the legalization of spot crypto ETFs—a move aimed at aligning South Korea with global financial markets.

Citing the U.S. Securities and Exchange Commission’s decision in January to approve spot Bitcoin ETFs, lawmaker Park Soo-min emphasized the urgency of keeping pace with international regulatory developments.

Alongside the ETF push, the party also committed to dismantling the “one exchange, one bank” regulation, which currently limits cryptocurrency exchanges to a single banking partner.

Critics argue that this policy has stifled competition and consumer choice in the country’s fast-growing digital asset market. “It is very restrictive not to be able to trade virtual assets through the bank of your choice,” Park said during the session at the National Assembly.

Further proposals include expanding access to crypto markets for institutional players. Should the PPP retain power, its plan would allow nonprofit organizations to trade digital assets starting in the second quarter.

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