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Gov't, PPP to consider approval of spot crypto ETFs

Published: 07 Mar. 2025, 12:23 Updated: 07 Mar. 2025, 17:52

SHIN HA-NEE
[email protected]

From left: People Power Party floor leader Kweon Seong-dong, Financial Services Commission Chairman Kim Byung-hwan, Financial Supervisory Service Gov. Lee Bok-hyun and Korbit CEO Oh Se-jin during a consultative meeting on the crypto market at the National Assembly in western Seoul on March 7. [YONHAP]

The government and conservative People Power Party (PPP) will “consider” approving spot cryptocurrency exchange-traded funds (ETFs) on Friday.

The Friday announcement followed a policy consultation meeting on the crypto market at the National Assembly in western Seoul. U.S. President Donald Trump had signed an executive order to establish a strategic bitcoin reserve earlier the same day, after pledging to make the country the “crypto capital of the world” during his presidential campaign.

PPP policy chief Kim Sang-hoon told reporters in a briefing that the party would work with the government to undergo the necessary review process, taking into account global trends as well as “infrastructure and regulatory framework” related to cryptocurrency ETFs, before making its final decision.

“An appropriate regulatory adjustment is needed, which should be neither excessively stringent nor too lenient,” PPP floor leader Kweon Seong-dong during the meeting, which was also attended by Financial Services Commission Chairman Kim Byoung-hwan and Financial Supervisory Service Gov. Lee Bok-hyun.

In February, the Financial Services Commission announced a plan to allow corporations to open bank accounts for cryptocurrency transactions but maintained its ban on financial firms’ virtual asset market participation, even as the United States approved of Bitcoin and ethereum spot ETFs early last year.

Meanwhile, the government and the PPP plan to run a task force to improve the domestic anti-money laundering system for virtual assets.

“As there have been requests for various regulatory tools to establish the domestic virtual asset market as a healthy market, the government and PPP agreed to accelerate the necessary legislative process,” said Kim Sang-hoon.

Updated, March 6: Added comments from PPP representatives, details on Korea's cryptocurrency regulations.

BY SHIN HA-NEE [[email protected]]