South Korea’s Ruling Party Considers Cryptocurrency Regulation Changes

South Korea’s ruling party is considering significant changes in cryptocurrency regulations as part of its election pledge, including the potential introduction of a U.S.-approved Bitcoin spot ETF. Moreover, it comprises the gradual lifting of the ban on institutional investment in Initial Exchange Offerings (IEOs). Additionally, they are considering establishing a digital asset promotion committee to advance the virtual asset industry.

South Korea Aims for Token Securities (ST) Legislation by Year-End

The People Power Party’s general election pledge may include these themes. They want a “digital asset promotion committee” to write legislation and enforce rules like banking regulators. South Korean laws make buying some cryptocurrencies difficult. This will be addressed by considering

spot ETFs with strong investor safeguards. Regulators forbid domestic securities firms from trading these instruments.

The party may also allow corporations to buy virtual assets. First, only financial investors can use this function. Soon, banks and insurers can prioritize client fund protection. The People Power Party urges President Yoon Seok-yeol to include IEOs in national goals. Exchange IEOs that mandate government reporting try to protect participants minimally.

Token securities (ST) laws should be passed this year. Local securities businesses and investment firms have struggled to issue token securities due to regulatory delays. This step accelerates the process. The party also wants to standardize virtual assets to prevent confusion. Some virtual asset markets are “unicorns” and others are gambling enterprises, therefore policies must be consistent.

South Korea’s Ruling Party Paves the Way for Digital Economy Leadership and Cryptocurrency

National Assembly members and other high-ranking government officials may get virtual asset blind trusts from the People Power Party. This makes virtual asset management simple and accountable like stocks. Additionally, these changes match global interest in cryptocurrencies and blockchain technologies. South Korea, known for its tech-savvy population and strong digital economy, wants to lawfully harness these new technologies and protect investment.

However, virtual goods data privacy and security vulnerabilities remain. The Hong Kong Office of the Privacy Commissioner for Personal Data (PCPD)’s latest regulation review emphasizes strict control and protection.

Virtual assets have several advantages despite these difficulties. By simplifying international business and spurring financial services innovation, cryptocurrencies can transform economies and civilizations. South Korea’s ruling party’s virtual asset plans show teamwork. They seek to mix new ideas and rules to make the country a digital economy leader while protecting investors’ rights.