South Korea Urged to Follow US Lead on Crypto ETFs After Ethereum Approval
The US Securities and Exchange Commission’s approval of spot Ethereum ETFs last week has ignited pressure on South Korea’s financial regulators to greenlight similar crypto exchange-traded funds.
Last week’s approval of Ethereum ETFs marked a dramatic reversal for the US market. Up until then, most market participants were expecting a rejection for these ETFs, atleast in May.
The Korea Times reported Monday that the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) are hesitant about allowing crypto assets to be traded on the traditional securities market.
The FSC cited the Capital Markets Act to justify its skepticism towards crypto ETFs. The Act restricts ETFs to underlying assets, which are traditionally real financial assets or securities like international currencies or commodities.
Jung Eui-jung, head of the Korean Stockholders’ Alliance, reportedly called for the authorities to follow the US and approve ETFs for Bitcoin and Ethereum. He believes this step is crucial to prevent investors, both in traditional finance and digital assets, from leaving Korea.
“Who would want to invest their money in a market that lags behind the fast-changing regulatory landscape?” Jung said.
South Korean crypto investors currently don’t have the option to trade spot Bitcoin and Ethereum ETFs. Additionally, financial authorities in January shut down any hopes for regulations allowing sales of Bitcoin futures ETFs in the near future.
In March, Lee Bok-hyun, governor of the Financial Supervisory Service, acknowledged the internal debate surrounding virtual assets. While he personally holds a positive view, others within the agency express more caution, he said. Lee stressed the importance of considering all
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