South Korea Signals Crypto U-Turn With Pledge To Unban Spot ETFs by 2025

Key Takeaways

• South Korea’s People Power Party (PPP) has introduced a seven-point plan to make the country a top-tier digital asset hub.
• The proposal includes legalizing spot crypto ETFs and security token offerings (STOs) by year’s end.
• The plan aims to modernize crypto rules and expand institutional participation in the sector.

South Korea’s ruling party is signaling a major shift in crypto policy as it looks to catch up with global leaders like the U.S. and Hong Kong.

With regulatory competition heating up worldwide, the People Power Party (PPP) says it’s time for South Korea to stop dragging its feet—and start leading.

Crypto ETFs on the Fast Track

At an emergency meeting this week, PPP representatives Park Soo-min and Choi Bo-yoon laid out a comprehensive “Global Digital Asset Market G2” roadmap.

One of its key pillars is the legalization of crypto spot exchange-traded fund (ETF) trading before the end of the year.

The party cited the U.S. Securities and Exchange Commission’s (SEC’s) approval of spot Bitcoin ETFs and the $4.6 billion in first-day trading volume on the NYSE as a tipping point. PPP highlighted how quickly global institutions have responded with new crypto investment products.

With Hong Kong approving spot crypto ETFs, the PPP warned that South Korea must act fast to avoid falling behind.

“Now, South Korea has no more time to procrastinate,” the party said. “To prevent outdated regulatory frameworks from stifling innovation in finance and virtual assets, the People Power Party is committed to enabling spot and ETF trading within the year.”

Revamping the Rules

The policy roadmap goes beyond ETFs. The PPP also pledged to finalize legislation for Security Token Offerings (STOs), allowing blockchain-based tokenization of traditional assets like real estate and fine art.

A lack of legal clarity has prevented broader participation in tokenized securities. The new framework intends to protect investors, establish market trust, and prevent misconduct.

The PPP also plans to scrap restrictive rules like “One Exchange, One Bank” and allow institutional trading by corporations and nonprofits.

In short, South Korea’s crypto policy is about to undergo a major overhaul. With spot ETFs, STOs, and expanded institutional access now in sight, Seoul could soon rejoin the global conversation on digital asset innovation.

“Blockchain-based securities are transforming finance by enabling fractional ownership models in real estate, fine art, and other asset classes,” the party said.“We recognize the urgent need for a robust legal framework that fosters investor protection, builds market trust, and deters unfair practices.”