South Korea plans new law with 2025 bill to promote crypto sector

South Korea’s People Power Party (PPP) announced plans to introduce a bill aimed at promoting the domestic cryptocurrency industry.

The party’s policy chief, Kim Sang-hoon, stated that the country needs to move beyond an era marked by uncertainty and heavy regulation toward actively fostering digital assets.

“Due to the government’s anti-money laundering efforts, an excessively regulation-focused policy is preventing foreign capital from entering the domestic virtual asset market,” Kim said.

He added that domestic investors are also withdrawing capital because of these regulatory constraints.

Kim described crypto as an asset class of the new economy with the potential to become the “21st-century gold” store of value.

“We hesitated, we were confused and unable to present a clear direction when faced with this new frontier,” Kim said.

He emphasised the need to transition toward institutionalising and promoting digital assets.

The bill, titled the “Digital Asset Promotion Basic Act,” is expected to be formally introduced next Monday, according to local news agency Newsis.

In parallel, South Korea’s Financial Services Commission (FSC) has been loosening restrictions on cryptocurrency investments.

In January, the FSC announced plans to gradually lift the ban on institutional investors participating in crypto markets.

An FSC spokesperson also indicated that foreign investors might soon be allowed to trade cryptocurrencies in South Korea, where such activity is currently restricted.

The FSC is also pursuing further legislation to build on the country’s initial crypto regulatory framework.

This legislation will focus on stablecoin regulations, token listing standards, and disclosure requirements.

These developments reflect ongoing efforts by South Korean authorities and lawmakers to balance regulatory oversight with fostering growth in the digital asset sector.