South Korea's People Power Party Proposes Crypto Deregulation

South Korea’s People Power Party, led by presidential candidate Hong Joon-pyo, unveiled plans on April 2025 for sweeping crypto deregulation aimed at boosting innovation across the nation.

The proposal seeks to reform regulations aligning them with U.S. deregulatory steps, potentially increasing institutional adoption of cryptocurrencies like Bitcoin and Ethereum.

The proposed deregulation, led by Hong Joon-pyo, represents a significant shift in the crypto regulation landscape in South Korea. Aiming to emulate recent U.S. policy changes, the initiative prioritizes digital growth.

Hong Joon-pyo, with support from the People Power Party, has been vocal in advocating for crypto-friendly policies. The proposal suggests substantial investment and an overhaul of current regulatory frameworks. To foster blockchain and virtual assets as an industry, Hong stated, “I will reform regulations as much as the Trump administration in the United States”.

The announcement has generated mixed reactions from industry stakeholders and regulators. Some believe it paves the way for economic opportunities, while others are cautious about potential risks and market volatility.

The proposed changes could significantly influence financial markets, boosting R&D investment and enabling broader crypto adoption. Historical trends suggest possible growth in trading volumes and narrowed price gaps on exchanges.

Previously, South Korea’s strict crypto regulations in 2017 and subsequent enforcement led to limited foreign participation. Any deregulation could reverse these past approaches, promoting institutional involvement.

Experts from Kanalcoin suggest that aligning policies with U.S. deregulatory moves might spur innovation. However, the outcome will largely depend on legislative success and effective implementation of reforms.