South Korea’s opposing Democratic Party is pushing to allow local citizens to invest in spot bitcoin exchange-traded funds and enable financial institutions to launch their spot bitcoin ETFs, local news media reported Tuesday.
The party is pledging to allow investors to purchase spot bitcoin ETFs through their individual savings accounts, according to a Seoul Economy Daily report. An ISA is an all-in-one account for various investments in funds or equity-linked securities, which also offers tax exemptions to financial profits of up to two million Korean won ($1,497).
With the news, both ruling and opposing political parties have now reportedly taken on opening up spot bitcoin ETF investments and product launches in South Korea as one of their main pledges ahead of the general election on April 10.
Last month, the country’s financial regulator reiterated its ban restricting financial institutions from launching any kind of cryptocurrency ETFs. Local investors are currently restricted from investing in spot crypto ETFs, while foreign crypto futures products remain available.
A member of the Democratic Party reportedly said that it may take legislative measures to revise the existing financial regulations to accommodate spot bitcoin ETFs if the country’s financial authorities decide to oppose the authorization of the products, Seoul Economy Daily reported.
Other election promises from the opposition party shadowed those prepared by the ruling party, as reported a day earlier, including lifting the ban on institutions from directly investing in crypto and raising the threshold for the scheduled tax on crypto gains from 2.5 million won to 50 million won.
The Democratic Party will reportedly announce its full proposal to institutionalize and vitalize the digital asset sector on Wednesday.
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About Author
Danny Park is an East Asia reporter at The Block writing on topics including Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the downfall of Terra-Luna and FTX. Based in Seoul, Danny has previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor of Journalism and Business Marketing from the University of Hong Kong.