Synopsis: South Korea’s Democratic Party plans to promote Bitcoin ETFs, despite the Financial Services Commission’s previous stance on illegal products. The party may seek legal reinterpretation or revise the Capital Markets Act.
The Democratic Party of Korea is planning to follow its agreement to permit exchange-traded funds (ETFs) denominated in Bitcoin, one way or another.
According to a local press report, the Democratic Party of Korea will ask the Financial Services Commission (FSC) to re-evaluate its judgment of the legal standing of spot Bitcoin ETFs (exchange-traded funds). One of the party’s platform pledges during the campaign was to permit spot ETFs with underlying virtual assets.
On January 12, the FSC released a statement claiming that listing foreign spot Bitcoin ETFs by domestic securities firms could be illegal under the Capital Markets Act. On January 10, the US Securities and Exchange Commission authorized spot Bitcoin ETF trading. The stance taken by the banking regulator from South Korea was not kindly noticed. On January 18, the outgoing presidential administration urged the FSC to reevaluate its ruling.
The Korea Economic Daily was informed by an unidentified Democratic Party policy committee official that the party would submit the request following the June 1st National Assembly opening. With 175 of the 300 seats in the legislature, the opposition party in South Korea was easily elected to power in the April elections.
Bitcoin ETF in South Korea to Emulate Hong Kong Market Trading?
Virtual assets such as Bitcoin ETFs, ETH, and Meme Coins are excluded from Market Trading in most of the countries including South Korea. Despite the low success of the Hong Kong ETFs, Hong Kong started trading spot Bitcoin and Ether exchange-traded funds on April 30, increasing optimism for the establishment of a similar market in South Korea.
The Capital Markets Act, after this latest news update, is on the way to being revised.
The BTF ETF announcement is paving the way for amending the 2020 Virtual Asset Business Rights Act. As per news routers, amending the act may take a few months at most, and trading may start in the latter half of the year.
Bitcoin ETF Future South Korea Exchange?
The 2020 act’s passing has resulted in South Korean officials exerting more control over the cryptocurrency sector. New regulations for cryptocurrency exchanges have been released in 2024, along with harsher penalties for offenses relating to cryptocurrencies.
This announcement explores future regulations and the legal status of cryptocurrency-based financial products in South Korea, advising against investing without consulting a qualified financial advisor. The information is based on current events and proposed actions, not financial advice.
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