- The one-exchange-one-bank rule will be scrapped to boost competition among crypto platforms.
- Corporate and institutional investors will gain full access to the crypto market by year-end.
- Spot crypto ETFs are expected to be approved within 2025, following U.S. and U.K. trends.
The People Power Party of South Korea has announced a new plan 28 to reshape the nation’s cryptocurrency ecosystem. The proposal includes seven measures to encourage digital asset adoption and innovation.
At an emergency committee meeting held at the National Assembly in Seoul, lawmakers Park Soo-min and Choi Bo-yoon presented the framework, part of the “Global Digital Asset Market G2” initiative. The proposed framework is the party’s commitment to positioning South Korea as a world leader in the digital finance space through targeted regulatory and financial reforms.
Notable proposals include easing banking restrictions, legalizing institutional participation in crypto markets, and authorizing spot cryptocurrency exchange-traded funds (ETFs).
Related: South Korea Tightens Crypto Reins, Blocks Unregistered Apps on Apple Platform
One-Exchange-One-Bank Rule to Be Scrapped
According to local media Edaily, the party will abolish the one-exchange-one-bank rule. This rule required crypto exchanges to partner with just one bank. It was designed to prevent money laundering through real-name verified accounts.
Lawmakers now plan to abolish the rule to open the door for more competitive partnerships between banks and exchanges.
Rep. Park Soo-min said the rule helped create a monopoly in the market. “Users should be able to choose the bank they want. This change will help open up fair competition,” he said.
Institutional and Corporate Trading to Be Legalized by 2025
The plan will also allow nonprofit organizations and institutional investors to trade digital assets. Starting in Q2, nonprofit organizations will gain access to the market.
By the end of 2025, around 3,500 institutions will be eligible. These include 2,500 listed companies and 1,000 professional investment firms. This move aims to bring more liquidity and legitimacy to the crypto space. Lawmakers hope it will also drive innovation within the corporate sector.
Spot ETFs to Be Approved
Furthermore, South Korea is preparing to approve spot crypto ETFs. These funds directly hold cryptocurrencies like Bitcoin and Ethereum.
The decision follows major regulatory moves in the U.S., U.K., and Hong Kong. The U.S. Securities and Exchange Commission approved spot Bitcoin ETFs in 2024. On the first day, they generated over $4.6 billion in trading volume.
Rep. Park said South Korea must move quickly to stay competitive. “There’s no time to delay. Global markets are already opening up,” she said.
Tax Relief, STO Regulation, and Stablecoin Rules Included
The plan also includes a new tax framework tailored to small investors. Lawmakers said most traders in the country invest small amounts.
A simplified and “groundbreaking” system will be created to reflect this reality. Borderless crypto trading for overseas users is also being considered. This would happen once safeguards against money laundering are in place.
Other proposals include a legal system for tokenized securities (STOs), stablecoin rules that follow global standards, and a basic law for digital asset growth.
Related: South Korean Traders Flock to XRP, TRUMP as Upbit Volume Exceeds $3.3 Billion
Notably, the People Power Party will form a special committee on virtual assets. It will operate under the party’s presidential candidate. The task force will guide policy reform, promote industry innovation, and restore investor trust.
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