The People Power Party (PPP) of South Korea has announced plans to eliminate the country’s contentious law governing crypto exchange banking, contingent on their candidate winning the Presidential Elections in June.
As reported by EDaily, the party intends to revoke a regulation that mandates domestic banks to enter exclusive partnership arrangements with local exchanges, which places a significant burden of risk on the banks.
Are Crypto Exchange Banking Rules Changing?
These partnerships are essential for exchanges to provide clients with crypto-fiat trading options. Currently, only five local exchanges have successfully secured such partnerships with banks.
After the law was introduced, many smaller exchanges had to shut down, while others looked for alternatives by solely offering crypto-to-crypto trading.
The PPP stated that amending this regulation would be one of seven “key objectives” aimed at enhancing the cryptoasset ecosystem.
At a summit on April 28, PPP lawmaker Park Soo-min expressed:
“Current restrictions prevent citizens from trading cryptoassets with their chosen banks. These regulations have reinforced market monopolies. We advocate for a more competitive landscape for exchanges.”
Additionally, the PPP introduced six more pledges related to crypto policies, which include:
- Initiating corporate crypto trading before the end of 2025
- Establishing a Virtual Asset Special Committee to report to the South Korean President
- Allowing crypto spot ETF trading “by 2025”
- Implementing legislation for security token offerings (STOs)
- Creating regulations for “global-standard” stablecoins
- Clarifying crypto taxation
The PPP believes these initiatives will stimulate industry innovation and rebuild investor confidence.
Countdown to the Election
South Korea is set to vote for a new President on June 3. Current polls show the PPP’s main competitor, the Democratic Party (DP), leading with around 47%, while the PPP trails at 35%.
The DP has already nominated Lee Jae-myung as its official candidate. In contrast, the PPP is deliberating between former Labor Minister Kim Moon-soo, former Daegu Mayor Hong Joon-pyo, and ex-PPP leader Han Dong-hoon for their candidate.
Han has previously made several pro-crypto commitments, including support for Bitcoin ETF approvals.
He also expressed a desire to ease regulations in the domestic crypto market to enhance its global competitiveness.
Members of the DP have likewise voiced intentions to reform crypto regulations in South Korea and have suggested establishing a national strategic Bitcoin reserve.
Nonetheless, many critics accuse both parties of using crypto rhetoric merely to attract younger voters.
Crypto issues were also a significant focus during the 2022 Presidential Elections. However, the winning candidate, Yoon Suk-yeol, later failed to fulfill many of his promises related to crypto.
The article titled “South Korea’s PPP Pledges to Ditch Crypto Exchange Banking Rules if Elected” first appeared on Cryptonews.
