New South Korean leadership will press for BTC ETF trading
The Democratic Party of Korea will request that the Financial Services Commission (FSC) reconsider its interpretation of the legal status of spot Bitcoin ( BTC ) exchange-traded funds (ETFs), according to a local press report. Allowing spot ETFs with underlying virtual assets was one of the party’s campaign promises.
An unnamed official of the Democratic Party policy committee told The Korea Economic Daily that the party would make the request after the opening of the National Assembly in June. The opposition party was swept into power in the April elections in South Korea and holds 175 of 300 seats in the legislative body.
The FSC issued a statement on Jan. 12 saying domestic securities firms could violate the Capital Markets Act by listing foreign spot BTC ETFs. The United States Securities and Exchange Commission approved spot BTC ETF trading on Jan. 10. The South Korean financial regulator’s position was not well received. The previous presidential administration urged the FSC to reconsider its decision on Jan. 18.
Related: Head of South Korea’s financial regulator to discuss crypto with Gary Gensler: Report
Virtual assets are not included in the Capital Markets Act’s definition of an underlying asset according to the prevailing interpretation. The official told the newspaper:
“If the authority's response to the authoritative interpretation is insufficient, we are considering revising the Capital Markets Act."
The process to amend that act requires many steps and would take months at best, the newspaper noted. In addition, the official stated that discussions will begin in the second half of the year on the second stage of the 2020 Virtual Asset Business Rights Act.
Hong Kong began trading in spot BTC and Ether ( ETH ) exchange-traded funds on April 30, raising hopes for the creation of an analogous market in South Korea, despite the Hong Kong ETFs’ modest performance .
Since the passage of the 2020 act, South Korean regulators have been tightening their grip on the crypto market. In 2024, tougher sentences for crypto-related crimes have been instituted , and new guidelines for cryptocurrency exchanges have been issued .
Magazine: South Korea’s unique and amazing crypto universe
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BERAUSDT now launched for futures trading and trading bots
US watchdog lodges complaint with DOJ, OGE over President Trump's official memecoin
Public Citizen has complained to the DOJ and OGE, calling for an investigation into President Trump over alleged federal violations related to his official memecoin launch.Federal law strictly regulates payments to government officials and bars gift solicitation, the watchdog said.
Ondo Finance expands onchain offerings with new Layer 1 blockchain
Franklin Templeton, Wellington Management and WisdomTree, among others, will advise on the design of Ondo Chain.Ondo Finance on Tuesday launched Ondo Global Markets, designed to open onchain exposure to stocks, bonds and ETFs.
BNB Chain's test memecoin surged to a $52 million market cap minutes after CZ posted about it
A BNB Chain test memecoin (TST) soared to a $52 million market cap within minutes of Changpeng “CZ” Zhao’s X post mentioning “happy trading!”Zhao clarified that TST is not an official BNB Chain token and that no one from Binance holds it.