South Korea’s ruling party retracts spot bitcoin ETF election promise: report
Quick Take
- The country’s ruling right-wing party has “indefinitely postponed” plans to push out election promises aimed at easing local crypto restrictions, according to a local media report.
South Korea’s ruling People Power Party has “indefinitely postponed” its plans to pledge the easing of crypto restrictions, including lifting the ban on local spot bitcoin exchange-traded funds (ETFs), according to a local report citing sources knowledgeable with the matter.
Earlier this month, the ruling party was reportedly preparing campaign promises aimed at pushing back taxation on crypto gains and allowing local institutions to launch spot bitcoin ETFs and directly invest in cryptocurrencies.
The party’s shift in position to retract the pledges may have resulted from difficulties in coordinating with the government and financial authorities on crypto policies, local news outlet Chosun Biz reported on Wednesday.
In January, 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.
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Meanwhile, the opposition Democratic Party, which had also vowed similar pledges regarding crypto ETFs, officially announced its crypto campaign promises last week. South Korea’s upcoming general election is expected to take place on April 10.
The Block has reached out to the People Power Party for comment.
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