The South Korean government suggests a potential opening of the country to Spot ETFs
The South Korean presidential office recently urged the country’s financial regulator, the Financial Services Commission, to reconsider its decision regarding the approval of a Bitcoin Exchange-Traded Fund (ETF).
This move, initiated by Sung Tae-yoon, head of the presidential office’s policy, suggests a potential opening of South Korea to crypto spot ETFs. This decision comes as the government explores ways to integrate foreign affairs into local regulations, signaling a possible shift in the country’s stance on cryptocurrencies.
The complex regulatory framework for cryptos in South Korea
Despite this presidential initiative, the regulatory framework surrounding cryptocurrencies in South Korea remains complex. The Financial Services Commission has previously warned against Bitcoin spot ETFs, citing potential violations of local capital market laws.
This warning has led several major local securities companies to suspend trading of already listed Bitcoin spot ETFs abroad.
In contrast, other Asian nations such as Singapore and Thailand have expressed reluctance to adopt Bitcoin spot ETFs, while Hong Kong seems to be a promising candidate to become the next hub for such ETFs in the region. In fact, the region’s regulator, the SFC, is likely to approve the first Bitcoin Spot ETF in the coming weeks, with Venture Smart Financial (VSFG) being the first candidate for this ETF.
