- Amidst a global surge in interest in Bitcoin exchange-traded funds (ETFs), South Korea finds itself at a crucial intersection.
- Lee Bok-hyun revealed in a recent radio interview that discussions among authorities in the country regarding the potential legalization of Bitcoin Spot ETFs are ongoing.
- As the uncertainty regarding the classification of Bitcoin as a fundamental asset persists, the approval of spot Bitcoin ETFs in South Korea is now under discussion.
As the increase in Bitcoin price continues, the issue of whether spot Bitcoin ETFs in South Korea will be approved has begun to be discussed.
South Korea Examining Spot Bitcoin ETFs
Amidst a global surge in interest in Bitcoin exchange-traded funds (ETFs), South Korea finds itself at a crucial intersection. Recent discussions among financial authorities in the country indicate the possibility of allowing spot Bitcoin ETFs.
This development comes at a time when countries worldwide are grappling with regulatory frameworks to cope with the booming cryptocurrency market and Bitcoin approaching historical price highs.
Known for its tech-savvy population, South Korea is actively considering allowing Bitcoin Spot ETFs. According to a recent report by Reuters, Lee Bok-hyun, the head of the Financial Supervisory Service, stated in a recent radio interview that discussions among officials in the country regarding the potential legalization of Bitcoin Spot ETFs are ongoing.
Lee also acknowledged differing perspectives within regulatory circles but expressed optimism about virtual assets. Hence, the financial auditor will consider the views of other authorities before reaching a conclusion on approval.
However, the uncertainty surrounding the classification of Bitcoin as a fundamental asset remains a key concern for South Korean regulators. Although South Korea’s financial authorities stated in January that they had no intention of regulating Bitcoin ETFs, sales of spot Bitcoin ETFs raised questions under the Capital Market Act.
Meanwhile, Lee anticipates public participation in the matter after regulatory control over virtual assets in the second half of the year. Additionally, a previous report by COINOTAG highlights the increasing interest of South Korea in the digital asset sector.
Especially noteworthy is the planned discussions among South Korean regulators, particularly between the Financial Supervisory Service (FSS) and their counterparts at the U.S. Securities and Exchange Commission (SEC) in May. These discussions will focus on specific issues, including the potential inclusion of non-fungible tokens (NFTs) and Bitcoin Spot ETFs in the virtual asset space.
Growing Global Interest During the Bitcoin Rally
The South Korean debate aligns with the increasing global interest surrounding Bitcoin ETFs, influenced by recent developments in the United States. Following the SEC’s approval of U.S. Bitcoin Spot ETFs on January 10, renewed momentum has been observed in recent weeks, accompanied by significant inflows.
On March 4, flows into U.S. Spot Bitcoin ETFs gained notable momentum after a brief slowdown the previous week. Notably, total Bitcoin ETF inflows throughout the day reached an impressive $588 million, with industry giants Fidelity and BlackRock each reporting inflows exceeding $400 million. However, during this surge, the Grayscale Bitcoin Trust (GBTC) experienced a noteworthy decline with a net outflow of $368 million.
This growing interest in Bitcoin ETFs indicates an increasing interest in cryptocurrencies on Wall Street as Bitcoin approaches historical highs. Furthermore, countries like Taiwan, in addition to the U.S. and South Korea, are considering regulatory frameworks for Bitcoin ETFs. The Taiwan Financial Supervisory Commission is evaluating the potential impact of possible regulations and considering the effects on Taiwanese investors regarding overseas Bitcoin ETFs.
While Bitcoin’s price rose by 3.89% in the last 24 hours, reaching $66,800, trading volume also surged by 123.65%, reaching $78.26 billion. It nearly approached an all-time high, reaching $68,785.95 in the last 24 hours.
