South Korea’s People Power Party announced seven major law changes to improve their virtual asset ecosystem. One of them is a plan to launch spot Bitcoin ETF within this year.
According to a report by local media Edaily, the People’s Power Party announced trading for digital asset spot ETF will be permitted this year. For the first time, traders in the country will be able invest in exchange-traded funds linked to major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Representative Park Soo-min said its about time South Korea allowed for crypto-backed ETFs in the market, considering other countries like the U.S., Hong Kong, and the U.K. have already taken the lead.
“Hong Kong and the U.K. have also approved spot ETF trading in succession. Korea has no time to delay,” said Park.
The decision is part of a series of regulatory changes proposed by the ruling party to accelerate the crypto industry in the country. Starting from the second quarter of this year, companies will be able to trade in digital assets.
So far, a total of 3,500 corporations and institutions, including 2,500 large-scale listed corporations and 1,000 professional investment corporations, will be institutionalized within this year in order to participate in the crypto market without restrictions.
Another major breakthrough is the abolishment of the “One Crypto Exchange, One Bank” policy. Under the policy, crypto exchanges in South Korea are only allowed to be tethered to one bank at a time. It was done to prevent financial crimes such as money laundering and to detect suspicion transaction.
However, the South Korean government realized that this policy is extremely restrictive for crypto exchanges that wish to establish partnerships with multiple banks.
In addition, the People Power Party also announced the creation of a token securities STO bill, which would include a stablecoin regulation system that meets global standards, basic laws for improving digital assets, and establishment of a new taxation system for crypto.
“We will not allow the authorities’ outdated regulations to hinder the growth of virtual assets that can help finance grow,” said Rep. Park.
In order to implement these changes, the Party wants to form a special committee on virtual assets directly under the People Power Party presidential candidate. The committee plans to take the lead in institutionalizing virtual assets, creating a foundation for industrial innovation within the crypto landscape.
According to a recent report by Hana Bank, young South Korean investors are leaning towards crypto investments. Not only that, the data showed that more than 30% of South Korea’s wealthy investors prefer crypto for long-term investments, outpacing interest in gold or property.