Legislative Hesitation Freezes Crypto Regulation Overhaul in South Korea

The People Power Party in South Korea has paused its plans to revise cryptocurrency regulations, putting a hold on proposals such as allowing local spot Bitcoin exchange-traded funds (ETFs). This decision, as reported by Chosun Biz, stems from the difficulties in achieving consensus between the party, government, and financial regulators regarding crypto policy.

Initially, the party showed interest in modifying the current stance on cryptocurrencies, suggesting changes that would delay the taxation of crypto earnings and enable domestic institutions to launch spot Bitcoin ETFs and make direct investments in digital currencies.

This shift in strategy, removing virtual assets from its immediate policy focus, comes as the party, under Yoon Chang-hyun’s leadership, opts to indefinitely delay the announcement of any crypto-related promises previously expected to be made public last week.