Emre Yumlu 
South Korea’s ruling People Power Party (PPP) has made a major push toward crypto-friendly regulation, promising to legalize spot crypto ETFs and dismantle key banking restrictions before the end of the year. These reforms are being proposed in the lead-up to the high-stakes snap election scheduled for June 3, following the impeachment of former president Yoon Suk Yeol.
Key Banking Restriction Set to Be Removed
One of the most significant proposals is the abolishment of the “one exchange, one bank” rule, which currently forces crypto exchanges to partner with only a single bank. This rule has long been criticized for stifling competition and user freedom. During an emergency session at the National Assembly, PPP lawmaker Park Soo-min stated that “people should be able to manage digital asset transactions through the bank of their choice.”
Spot Crypto ETFs Could Be Approved This Year
Another major promise is the legalization of spot crypto ETFs by the end of 2025. Citing the U.S. SEC’s approval of spot Bitcoin ETFs earlier this year, the party emphasized the urgency of adapting to global developments.
PPP’s roadmap also includes expanding access to the crypto market for institutional players. If elected, the party plans to allow over 3,500 corporations, nonprofits, and investment firms to participate in crypto trading starting in Q2.
Regulatory Framework for Stablecoins
The party also aims to introduce a global-standard regulatory framework for stablecoins. Rep. Choi Bo-yoon emphasized that the new system would align with international norms, improving transparency and investor protection.
To oversee the sweeping changes, PPP intends to establish a Virtual Asset Special Committee under the direct supervision of the presidential office. Additionally, the party plans to enact a Framework Act on the Promotion of Digital Assets, which would bring new rules for exchange operations, token listings, and transactional disclosures.
Trump-Era Deregulation Inspires Korean Push
PPP’s crypto-forward agenda mirrors recent developments in the U.S., where former President Donald Trump has championed deregulation in the DeFi space, proposed a national Bitcoin reserve, and integrated crypto into mainstream financial strategy.
Presidential candidate Hong Joon-pyo drew parallels to Trump’s approach, vowing to “roll back regulations just like the Trump administration did” and expand blockchain adoption across South Korea’s public sector.
Opposition Offers Few Crypto Details
Whether these promises become reality depends on the outcome of the election. The leading opposition figure, Lee Jae-myung of the Democratic Party, has focused on restoring democratic norms and economic stability, but has remained vague on his stance regarding digital assets. Current polling shows Lee in the lead, casting uncertainty over PPP’s ambitious crypto reform agenda.
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