South Korea’s ruling People Power Party is exploring the possibility of allowing spot bitcoin exchange-traded funds (ETFs) as part of its campaign promises ahead of the upcoming general election in April, according to a report from a local media outlet on Monday.
In addition to spot bitcoin ETFs, the right-wing party is considering legislative measures to approve other cryptocurrency-related investment products that have been authorized in the United States, as reported by South Korean news agency News1. However, the country’s financial regulator recently reiterated its ban on financial institutions launching any form of cryptocurrency ETFs.
The ruling party also intends to review gradually lifting the ban on institutional investment in crypto and initial exchange offerings (IEOs). Regarding institutional crypto investment, the party is exploring the possibility of permitting investment firms to purchase crypto before allowing banks or insurance companies to do so, considering the latter’s responsibility for safeguarding user funds.
Furthermore, the People Power Party plans to establish a “Digital Asset Promotion Committee” with sufficient authority to propose laws and impose sanctions related to digital assets, according to the report.
Earlier reports from local media outlet Herald Business Daily suggested that the People Power Party may also promise to delay the taxation on crypto gains from the beginning of 2025 to 2027.
These election promises from the People Power Party are targeted at garnering support from South Korean citizens in their 20s and 30s, as over 80% of cryptocurrency holders in South Korea belong to this age group, according to data from the National Tax Agency as of September 2023.