The South Korean People Power Party (PPP) has claimed that it will abolish the country’s controversial crypto exchange banking law if its candidate wins June’s Presidential Elections.
The South Korean media outlet EDaily reported that the party has promised to do away with a law that requires domestic banks to form exclusive partnership deals with domestic exchanges, with the former absorbing the lion’s share of risk liability.
Crypto Exchange Banking Rules: On the Way Out?
Without such a partnership, exchanges cannot offer their clients crypto-fiat pairings. At present, only five domestic exchanges have managed to convince banks to enter such partnerships.
Shortly after the law was rolled out, scores of smaller exchanges were forced to close. Others have tried to get by, offering their clients crypto-to-crypto only trading.
The PPP said the rule change would be one of seven “major tasks” that would help it “foster the cryptoasset ecosystem.”
Speaking at a summit held at the National Assembly on April 28, PP lawmaker Park Soo-min said:
“It is very restrictive for citizens if they cannot trade cryptossets through the bank of their choice. [The current rules] have solidified monopolies on the market. [Our approach] will also open the door to competition between exchanges.”
The PPP also unveiled six other crypto-related policy manifesto pledges, namely:
- The launch of corporate crypto trading before the end of 2025
- The creation of a Virtual Asset Special Committee that will report to the South Korean President
- Green-lighting the launch of crypto spot ETF trading “within 2025”
- Security token offering (STO) legislation
- “Global-standard” stablecoin regulation
- Crypto tax clarity
The PPP said that its policies would help foster innovation in the industry and restore investors’ trust.
Election Countdown Continues
South Korea will head to the polls to elect a new President on June 3. Polls currently put the PPP’s biggest rival, the Democratic Party (DP), ahead with ratings of almost 47%, ahead of the PPP’s 35%.
The DP has already selected its leader, Lee Jae-myung, as its official candidate. The PPP is likely to choose between Former Labor Minister Kim Moon-soo, ex-Daegu Mayor Hong Joon-pyo, and the former PPP leader Han Dong-hoon when it completes its own selection process.
Han has previously made a slew of his own pro-crypto promises, including calls for Bitcoin ETF approval.
And Han said that he wanted to deregulate the domestic crypto sector to boost its international competitiveness.
Members of the DP have also spoken of their wish to reform crypto regulations in South Korea. Some senior figures have also talked up the idea of launching a national strategic Bitcoin reserve.
However, many critics think that both parties are talking about crypto in a bid to lure younger voters to the ballot box.
Crypto was also a major talking point going into the 2022 South Korean Presidential Elections. However, the victorious Yoon Suk-yeol later failed to deliver on many of his crypto-related manifesto promises.
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