South Korea Plans Spot Bitcoin ETF and Crypto Law Overhaul

• South Korea plans to approve spot Bitcoin ETFs and revamp crypto laws.

• Rep. Park urges swift action, inspired by U.S. Bitcoin ETF success.

South Korea may soon take a significant step toward modernizing its digital asset environment. According to recent developments, the South Korean People Power Party initiated reforms that aim to enhance their country’s cryptocurrency laws. A significant change in regulations features the potential approval of spot Bitcoin exchange-traded funds (ETFs) during this current year.

South Korea Unveils 7-Point Plan to Modernize Crypto Laws

Seven significant initiatives for developing an improved digital currency system were introduced during a meeting on April 28 at the National Assembly. South Korea demonstrates its plan to embrace worldwide crypto policies through this regulatory decision.

A fundamental amendment seeks to eliminate the restriction that exchanges require only one banking partnership to operate. Each crypto exchange previously needed to maintain a limited banking partnership under which they operated real-name verified accounts as per the former rule system. The intended anti-financial crime measure through this regulation faced criticism because it restricted user freedom while diminishing market competition.

Lawmaker Park Soo-min objected to the existing restrictions because they enabled domination by limited crypto exchanges. The removal of this rule would create more possibilities for market competition and increased operational efficiency in the digital asset industry, according to him.

In addition, the People Power Party dedicates its efforts to removing market access barriers, which will enable more participants to join the space. The government will authorize non-profit organizations and large-scale corporations to start trading virtual assets during the second quarter of 2025. The sector reforms will provide entry to this market for 3,500 institutions, made up of 2,500 publicly listed companies and 1,000 investment firms, by the end of this year.

Moreover, the reform plan centers on the introduction of spot Bitcoin ETFs as one of its main priorities. These financial products acquire and store Bitcoin along with Ethereum, whereas their market values track the price fluctuations of the underlying digital currencies. After observing the high trading volumes of Bitcoin spot ETFs in the U.S., Hong Kong, and the U.K., Korean lawmakers believe now is the time to act.

Rep. Park Urges Korea to Follow U.S. Lead on Bitcoin ETFs

As explained by Rep. Park, a Bitcoin ETF approved by the United States in January generated billions of new trading volume during its inaugural day. According to him, the high investor demand mandates that South Korea should not let itself lag.

In addition to these steps, the party works to implement additional reforms parallel to the previously mentioned initiatives. The party seeks to pass three main pieces of legislation: first, it wishes to establish regulations for stablecoins; second, to create a basic digital asset law; and third, to implement new laws on tokenized securities (STOs). The party works to establish a new taxation structure that will benefit smaller investors financially. The authorities hope to secure international exchange users for South Korean platforms as they establish financial security measures.

To manage and guide these changes, under the leadership of the People Power Party presidential candidate, a special virtual assets committee will be established. The team will direct digital asset trading institutionalization while promoting both sector progress and public trust in digital assets.

In conclusion, South Korea implements substantial initiatives to increase its position within the worldwide crypto market. The nation implements contemporary regulations along with market-friendly changes to establish a safer digital asset economy that will compete globally.