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- The People Power Party proposes a ‘digital asset promotion committee’ to foster virtual asset industry growth.
- Plans include allowing Bitcoin spot ETF and enabling corporate investments in virtual assets for a more inclusive financial landscape.
In a move that could significantly alter the financial landscape of South Korea, the People Power Party has unveiled a series of ambitious pledges focused on the virtual asset industry, signaling a potential new era of cryptocurrency acceptance and innovation within the country.
As the general election looms, these proposals could not only reshape the regulatory framework for digital currencies but also attract a younger demographic of voters.
A Committee for Change
At the heart of the party’s pledges is the creation of a ‘digital asset promotion committee.’ Tasked with the authority to propose new laws and enforce sanctions, this committee aims to bridge the gap between rapid technological advancements in the virtual asset space and the current regulatory framework.
This initiative underscores the party’s commitment to fostering a conducive environment for the growth and development of the virtual asset industry.
Recognizing the global nature of the cryptocurrency market, the People Power Party plans to allow investment products approved in developed countries, such as Bitcoin spot exchange-traded funds (ETFs). This proposal is groundbreaking, given the current restrictions on overseas Bitcoin spot ETF trading through domestic securities firms, a result of the financial authorities’ stringent regulations.
By adopting globally accepted investment products and mandating robust investor protection measures, South Korea aims to position itself as a forward-thinking player in the virtual assets market.
Legal and Regulatory Framework
The forthcoming ‘Virtual Asset User Protection Act’ and the proposed elevation of the virtual asset organization within the Financial Services Commission are indicative of the People Power Party’s approach to regulation. By enhancing the organization’s authority to a level akin to the Securities and Futures Committee, the party seeks to provide a more structured and secure environment for virtual asset users and investors.
Token Securities and Investment Opportunities
A notable aspect of the People Power Party’s pledge is the facilitation of Initial Exchange Offerings (IEOs) and the allowance for corporations to invest in virtual assets. This move is particularly aimed at financial investment companies and banks, with a phased approach to ensure the safety of customer funds.
Moreover, the party is committed to finalizing legislation related to token securities within the year, addressing the current stagnation in the token securities issuance business.
The People Power Party also aims to resolve existing policy discrepancies that have hindered the virtual asset industry’s growth. By aligning the classification of virtual asset exchanges and addressing the conflicting policies, the party endeavors to create a more coherent regulatory environment.
Additionally, the introduction of a virtual asset blind trust for National Assembly members and high-ranking officials demonstrates a commitment to transparency and integrity in the handling of virtual assets.
