South Korea Set to Approve Spot Bitcoin ETFs in June
South Korea is on the verge of a significant financial breakthrough as the Democratic Party prepares to introduce spot Bitcoin ETFs to the local market. This move aligns with the party’s campaign promises and has the potential to revolutionize the perception and trading of cryptocurrencies in the country.
The Democratic Party is urging the Financial Services Commission (FSC) to reconsider the current ban on spot Bitcoin ETFs, as reported by local media outlet Blooming Beat. An official from the party’s policy committee has revealed plans to formally request an authoritative interpretation of Bitcoin spot ETFs once the 22nd National Assembly begins in June.
The Democratic Party has long been advocating for the integration of cryptocurrencies into mainstream financial products. In a recent statement, they emphasized their commitment to enabling the issuance, listing, and trading of ETFs that utilize digital assets like Bitcoin as underlying assets.
While South Korean financial regulators have historically resisted the inclusion of Bitcoin spot ETFs under the Capital Markets Act, the international landscape is changing. With the approval of a Bitcoin spot ETF in the United States in January and the commencement of Bitcoin and Ethereum spot ETF trading in Hong Kong, there is renewed optimism that South Korea may follow suit.
The Democratic Party’s overwhelming victory in the recent general election, securing 175 out of 300 seats, has boosted confidence that their cryptocurrency-related initiatives will be successful. However, discussions on implementing these pledges have not yet begun due to the pending inauguration of the new assembly.
If the FSC’s forthcoming interpretation is deemed unsatisfactory, the party plans to push for significant legislative changes. Discussions on the Second Stage Virtual Asset Act are expected to commence later this year, and if those efforts fail, an amendment to the Capital Markets Act will be considered. However, this amendment process is not immediate and would involve extensive consultations and approvals, potentially resulting in delays of several months before any actionable changes can be made.
Tags: Bitcoin ETF, Crypto Regulations