South Korea’s People Power Party has announced a plan to allow trading for digital asset spot ETF this year. The decision comes along with seven major law changes to improve their crypto ecosystem.
The move towards launching a Bitcoin ETF can be considered as a milestone in the history of the South Korean crypto community, as this step would allow investors to invest in exchange-traded funds linked to major cryptocurrencies such as Bitcoin and Ethereum, According to local media.
The ruling party is aiming to develop the crypto industry through a series of regulatory changes allowing companies to trade in digital assets Starting from the second quarter of this year.
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Revoking the “One Crypto Exchange, One Bank” policy
One of the regulations that the South Korean government is relying on is the cancellation of the “One Crypto Exchange, One Bank” policy, which only allowed exchanges to be tethered to a single bank at a time to prevent financial crimes such as money laundering and to detect suspicious transactions. However, the government concluded that the policy is extremely restrictive for crypto exchanges seeking to establish partnerships with multiple banks.
New stablecoin regulation system
The government of South Korea also recognized the importance of the token securities STO bill, which includes a stablecoin regulation system that meets global standards. The bill will be introduced in two parts: the first part will establish basic laws for improving digital assets, and the second will focus on creating a new taxation system for crypto.