Key Points
- South Korea's ruling People Power Party has indefinitely delayed its plans to relax crypto restrictions.
- The opposition Democratic Party has officially announced its crypto campaign promises.
South Korea's governing People Power Party has reportedly put on hold its plans to ease cryptocurrency regulations. This includes lifting the prohibition on local spot bitcoin exchange-traded funds (ETFs). The decision came from sources familiar with the situation.
Change in Crypto Policies
Earlier this month, the ruling party was reportedly crafting campaign pledges. These were intended to delay taxation on cryptocurrency profits and permit local institutions to launch spot Bitcoin ETFs. They also aimed to allow direct investments in cryptocurrencies.
The party's decision to withdraw these promises could be due to challenges in aligning with the government and financial authorities on cryptocurrency policies. This was reported by a local news outlet.
Regulatory Restrictions and Opposition Party's Stance
In January, South Korea's financial regulator reiterated its ban. This ban restricts financial institutions from launching any type of cryptocurrency ETFs. Currently, local investors are barred from investing in spot crypto ETFs. However, foreign crypto futures products remain accessible.
Meanwhile, the opposing Democratic Party, which had also pledged similar promises about crypto ETFs, made its crypto campaign promises public last week. The general election in South Korea is anticipated to occur on April 10.
The People Power Party has been contacted for comment on this matter.
