No Bitcoin ETF Without Further Crypto Regulation, Says South Korean FSS Chief
No Bitcoin ETF will gain approval in South Korea unless the government introduces new crypto rules, the head of the Financial Supervisory Service (FSS) said on March 5.
The FSS chief Lee Bok-hyun this week struck an optimistic note about possible Bitcoin spot exchange-traded fund approval.
But per the media outlet Nocut News, Lee also tempered his claims with several calls for “caution.”
Lee was widely reported as claiming on March 5 that he was “one of the regulators who are positive about virtual assets.” He claimed that “there are others who are more wary.”
But Lee also said that certain regulatory conditions still needed to be met before regulators could green-light a crypto-related financial product. He explained:
“To [approve] a Bitcoin spot ETF, we need a system that lets regulators manage and operate virtual assets. Only when this is in place can the [BTC] spot ETF market be opened in South Korea.”
Seoul is under pressure to approve Bitcoin ETFs in line with a landmark move from Washington-based regulators in January.
But in mid-January, anonymous financial investment industry officials said new crypto regulation must wait until the end of next month’s legislative elections.
South Koreans will go to the polls to vote for National Assembly members on April 10.
The same officials stated that a major “overhaul” of crypto law would likely follow the elections.
However, the nature of this legislative change may depend on the makeup of the single-chamber parliament.
President Yoon Seok-yeol’s manifesto promises before his election in 2022 contained a series of pro-crypto industry pledges.
Thus far, he has failed to deliver on many of these – including a revision of the nation’s long-standing ban on domestic cryptoasset issuance.
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