Ruling party of South Korea reneges on its commitment to Bitcoin ETF election pledge

The ruling People Power Party of South Korea has decided to indefinitely postpone its proposal to ease cryptocurrency restrictions, which includes lifting the ban on local spot Bitcoin exchange-traded funds (ETFs), according to local sources. This reversal of pledges is believed to be due to difficulties in aligning with the government and financial authorities on cryptocurrency policies. Previously, there were reports that the party was planning to delay taxing crypto profits and allow domestic institutions to introduce spot Bitcoin ETFs and invest directly in cryptocurrencies. However, the People Power Party has now removed virtual assets from its policy priorities and postponed the announcement of a virtual asset pledge. On the other hand, the opposition Democratic Party has officially announced its crypto campaign promises, including similar pledges regarding crypto ETFs. The Financial Services Commission of South Korea remains cautious about digital assets, despite the recent approval of the spot Bitcoin ETF by the US Securities and Exchange Commission. The Financial Supervisory Service, the primary financial regulator of South Korea, is planning to seek guidance from the US SEC on spot Bitcoin ETFs.