SEOUL - The Democratic Party (DP), South Korea's main opposition, announced its intention on Wednesday to legalize bitcoin-based exchange-traded funds (ETFs) as part of its campaign pledges for the upcoming April elections. This move aims to enhance investors' access to cryptocurrency financial products by allowing the issuance, listing, and trading of ETFs tracking major cryptocurrencies like bitcoin.
According to Yonhap News Agency, Rep. Hong Ihk-pyo, the DP's floor leader, highlighted the initiative as a strategy to garner support from young voters, particularly those in their 20s and 30s, who represent a significant portion of the cryptocurrency investment community in South Korea. The announcement follows keen interest from local investors in the possibility of South Korea emulating the United States, where the Securities and Exchange Commission approved bitcoin ETFs for trading on the stock exchange in January.
Despite enthusiasm from potential investors, South Korea's financial regulator has previously stated that cryptocurrency-based financial products would contravene existing laws. In addition to promoting bitcoin ETFs, the DP proposed regulations to prevent lawmakers from trading virtual assets during legislative sessions, a response to last year's revelations of Rep. Kim Nam-kuk's frequent virtual asset trading during parliamentary meetings.