South Korea’s Republic of Korea Appeals to Financial Regulators to Reevaluate Its Stance Against ETFs

South Korean authorities have reiterated their strict regulations on local financial institutions regarding the ownership, purchase, and investment in cryptocurrencies, making it clear that a spot Bitcoin ETF will not change their stance. However, the South Korean government has now requested financial regulators to reconsider their anti-ETF policy. The head of the policy office of the presidential office, Tae-yoon Sung, stated that they are exploring the possibility of making appropriate changes to the country’s legal system or accepting practices from abroad. The regulators are also focused on ensuring that the introduction of a Bitcoin ETF does not have any negative impact on other financial products or the real economy. Additionally, the Financial Intelligence Unit is working on implementing new regulations for digital asset-mixing services, a discussion that was prompted by the US imposing sanctions on crypto mixers. However, any decisions related to this matter are not expected to be implemented in the near future.