South Korea’s Ruling Party Delays Proposal to Ease Crypto Restrictions
South Korea’s ruling People Power Party has indefinitely postponed its plans to ease crypto regulations, including the lifting of the ban on local spot Bitcoin (BTC) exchange-traded funds (ETFs).
According to a report from local media outlet Chosun Biz , the party recently removed virtual assets from its list of policy priorities, effectively abandoning its plan to make a pledge to ease regulations.
Previously, the People Power Party, led by Representative Yoon Chang-hyun of the National Assembly’s Political Affairs Committee, intended to announce a virtual asset pledge ahead of the general election scheduled for April 10.
An official familiar with the party’s situation stated that the party leadership is currently focused on constituency nominations and personnel selection for the People’s Future, a proportional satellite party.
The official further explained that starting in March, the party will prioritize election campaigns in each constituency, leaving little possibility for the announcement of virtual asset pledges in the remaining period.
One of the key factors behind the party’s decision is believed to be the challenges faced in aligning with the government and financial authorities on cryptocurrency policies.
The People Power Party’s proposed pledge included plans to allow the issuance and trading of Bitcoin spot ETFs.
However, the Financial Services Commission has maintained a strong negative perception of the investment risks associated with virtual assets.
While the U.S. Securities and Exchange Commission approved the Bitcoin spot ETF in the past month, the Financial Services Commission has prohibited investment in and issuance of these products, citing the exclusion of virtual assets from the
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