The proposed regulatory changes will enable around 3,500 corporations and institutions to begin trading in digital assets without restrictions starting in the second quarter of 2025.

Rep. Park stated that outdated regulations should not obstruct the growth of virtual assets, which can significantly contribute to financial development.

The success of these proposed reforms will depend on the outcome of the upcoming presidential election, where the PPP faces competition from opposition leader Lee Jae-myung.

The party believes that allowing multiple banking partners for crypto exchanges will foster a more competitive market, moving away from the criticized 'one exchange, one bank' rule.

The People Power Party (PPP) of South Korea is advocating for significant reforms in the crypto sector, including the approval of spot crypto exchange-traded funds (ETFs) and the repeal of restrictive banking rules.

To further support the crypto sector, the party plans to propose the 'Digital Asset Promotion Basic Act' and the Framework Act on the Promotion of Digital Assets.

Additionally, the PPP's proposals include legalizing security token offerings and establishing a comprehensive regulatory framework for stablecoins to ensure international compliance.

Ahead of the presidential election on June 3, 2025, the PPP has announced seven initiatives aimed at enhancing the country's crypto industry.

Among these initiatives is the plan to allow trading of spot crypto ETFs in 2025, aligning with global trends following the U.S. Securities and Exchange Commission's approval of Bitcoin ETFs in January 2024.

This significant policy change aims to eliminate limitations that previously restricted crypto exchanges to partnerships with a single bank, which was intended to prevent financial crimes.

Lawmaker Park Soo-min emphasized the urgency for South Korea to catch up with countries like the U.S., Hong Kong, and the U.K., which have already approved spot ETF trading.

To oversee the implementation of these reforms, the PPP plans to establish a Virtual Asset Special Committee under the presidential office.