Key Points
- South Korean regulators face increasing pressure to approve cryptocurrency ETFs after the US and Hong Kong’s recent approvals.
- There are concerns that investors may move their funds to US markets if South Korea continues to lag behind in crypto regulation.
South Korean financial watchdogs are feeling the heat to greenlight exchange-traded funds (ETFs) for cryptocurrencies. This comes in the wake of the U.S. Securities and Exchange Commission’s (SEC) recent endorsement of spot Ethereum ETFs.
This information was reported by Korea Times, who heard from local representatives from both the crypto and traditional finance sectors.
Outdated Approach
A representative from Xangle, a crypto data provider based in Seoul, critiqued Korea’s current stance as “outdated”. They suggested that the recent developments in the U.S. might increase the pressure on Korean regulators.
The representative stated, “Under the circumstances, the SEC’s Thursday decision on Ethereum is anticipated to press Seoul’s financial regulators to reconsider its regulations against digital assets.”
Concerns Beyond Crypto
The dissatisfaction with Seoul’s reluctance to act is not limited to the crypto industry. Jung Eui-jung, head of the Korean Stockholders’ Alliance, stressed the need to follow the U.S. lead by approving Bitcoin and Ethereum ETFs.
Jung expressed his concern that if Korean regulators continue to lag behind while the U.S. moves forward, investors may transfer their funds to U.S. markets. He said, “In order to ensure that investors, both in traditional finance and digital assets, do not exit Korea. Who would want to invest their money in a market that lags behind the fast-changing regulatory landscape?”
He further warned that it’s only a “matter of time for the U.S. to fully open the door for other less-traded cryptocurrencies.”
