South Korea’s People Power Party has revealed a new roadmap to restructure the nation’s digital asset sector. The proposal includes legalizing spot cryptocurrency ETFs and opening the market to institutional and nonprofit investors.
At a recent National Assembly meeting, lawmakers Park Soo-min and Choi Bo-yoon presented the reform plan. The announcement is part of the “Global Digital Asset Market G2” initiative aimed at global competitiveness.
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Crypto ETFs Set for Approval
The plan confirms that South Korea will approve spot cryptocurrency exchange-traded funds. These ETFs hold digital assets such as Bitcoin or Ethereum, offering investors direct market exposure.
Legislators believe this initiative follows practices recently implemented by the United States, Hong Kong, and the United Kingdom. According to Park Soo-min, South Korea needs to act immediately to prevent losing ground in global financial markets.
Spot ETF approval will likely attract additional retail and institutional investors. The adoption of spot ETFs will generate enhanced market liquidity and increased credibility for cryptocurrency activities throughout the country.
Institutional and Nonprofit Access Expanded
Nonprofit organizations will be allowed to trade digital assets starting in the second quarter of this year. By the end of 2025, institutional access will expand to over 3,000 entities, including public companies and investment firms.
Lawmakers believe this broader access will drive corporate innovation and increase capital flow into the crypto market. It marks a significant shift from past policies that limited institutional participation.
Additional Reforms to Follow
The party leadership intends to abolish the regulation of having exchanges restrict their banking to a single provider. Authoritative sources state that the imposed restriction limited marketplace competition by benefiting major players in the market.
These reforms present a tax framework designed for minor investors. According to lawmakers, most Korean crypto traders engage in minimal transactions, so they require basic reporting requirements.
New regulatory rules will include tokenized securities and stablecoins. The changes align with worldwide guidelines to enhance digital asset business safety and transparency.
Conclusion
South Korea’s decision to legalize crypto ETFs and expand institutional trading marks a significant policy shift. These reforms are expected to reshape the country’s digital finance environment and boost its position in the global market.
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