- Following its initial hostile stance on spot Bitcoin exchange-traded funds (ETFs), the South Korean government may reconsider its position on the matter.
- Since 2017, the South Korean government has displayed a somewhat unfriendly attitude towards certain aspects of the crypto industry and similar products.
- According to information revealed in a local report, statements made by Sung Tae-yoon in a recent briefing could prompt a review of the Financial Services Commission’s (FSC) stance.
The South Korean government may reconsider its stance on spot Bitcoin ETFs; What do recent reports indicate?
South Korea may reconsider Bitcoin ETFs
Following its initial hostile stance on spot Bitcoin exchange-traded funds (ETFs), the South Korean government may reconsider its position on the matter. This move has been triggered by statements made by Sung Tae-yoon, who is the Secretary of the Presidency of South Korea, and an analysis conducted by the Industrial Bank of Korea (IBK).
Since 2017, the South Korean government has displayed a somewhat unfriendly attitude towards certain aspects of the crypto industry and similar products. The financial regulator in the country has acted to protect investors by imposing strict rules on financial companies seeking to invest in the asset class.
Despite the long-awaited approval of the spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC), the South Korean government maintained its hostile stance. According to a statement from an official at the Financial Services Committee (FSC) of the country, the SEC’s decision does not affect the institution’s commitment to banning virtual assets.
According to information revealed in a local report, statements made by Sung Tae-yoon in a recent briefing could prompt a review of the FSC’s stance. The Secretary of the Presidency emphasized the need for the Financial Services Committee to align the country’s perspective on virtual assets with international standards, stating:
“We told the Financial Services Committee and the responsible ministry not to provide specific guidance in the form of ‘yes or no.’ Despite being another investment asset class (such as spot Bitcoin ETFs), we are further examining how to prevent it from being a side effect or risk factor for other financial products or the real economy.”
IBK Shows Interest in BTC and ETH Products
Taking advantage of the recent developments, Kim In-sik, a researcher at IBK Securities, a global financial investment company, speculated that the demand for investment instruments such as spot Bitcoin ETFs would be “strong.” The researcher added that the investment firm positions itself as the issuer of a futures Ethereum ETF with an efficiency-focused strategy.
