Pay Attention to This Date in Bitcoin: The Long-Standing Bitcoin ETF Ban in South Korea May Be Lifted! Here’s What We Know

The CEO of the crypto analysis platform CryptoQuant, Ki Young Ju, announced that all three main presidential candidates in South Korea support spot Bitcoin ETFs and institutional investments.

Currently, despite the lack of allowance for Bitcoin ETFs and institutional investors in the country, this approach is expected to deeply affect the electoral process. Currently, crypto trading transactions are conducted 100% by individual investors.

Democratic Party candidate Lee Jae-myung and People Power Party candidate Kim Moon-soo are attracting attention with bold crypto promises not seen in previous elections to win over young people and middle-class voters.

Today, both main candidates promised that spot ETFs for major cryptocurrencies like Bitcoin would be able to trade on local exchanges. This step is expected to invigorate the investment environment.

Early presidential elections will be held in South Korea on June 3, 2025.

Lee Jae-myung stated in his Facebook post on May 6, "We will help young people build assets," announcing that they will work towards bringing in spot ETFs and establishing an integrated oversight system. He also mentioned that crypto transaction fees will be reduced.

Kim Moon-soo introduced the "Middle Class Asset Enhancement Project" as one of his election promises and stated that he plans to bring spot ETFs within this scope. He also mentioned during the party primaries that he would allow government institutions to invest in cryptocurrencies and would give the green light to spot ETFs.

However, financial regulators are still cautious about this issue, citing the potential risks of virtual assets to the financial system. In order for spot ETFs to be introduced, financial institutions will need to hold virtual assets, and there is a prevailing concern that this could lead to fluctuations in financial markets.

In 2017, under the "Virtual Currency Emergency Measures" that came into effect, it was prohibited for corporate financial institutions to hold, purchase, pledge, or establish partnerships with virtual currency.

Nevertheless, in March 2025, the ruling and opposition parties agreed to reassess spot ETFs in order to revitalize the market. The fact that both parties' presidential candidates support spot ETFs has raised expectations that the legal process in this area may accelerate.

Beyond spot ETFs, presidential candidates are preparing comprehensive plans to revitalize the virtual asset sector.

The Democratic Party recently held its first meeting by establishing a Digital Asset Committee under its election campaign committee. The committee began discussing legal frameworks covering topics such as stablecoins, NFTs, and security token offerings like (STO). Committee Chairman Representative Min Byeong-deok stated, "It is time to enact the Fundamental Digital Asset Law that balances user protection and sector development."

The People's Power Party announced a crypto pledge package at the emergency committee level on April 28. These include:

• Allowing Spot ETFs,
• The removal of the principle of "A stock exchange, a bank"
• The institutionalization of virtual asset trading for companies and institutions,
• Establishing a stablecoin regulation system,
• The enactment of the Fundamental Law for the Development of Digital Assets,
• The introduction of a revolutionary new tax system is included.