No Bitcoin ETF Approval Without New Crypto Regulations in South Korea, Says FSS Chief
The head of the Financial Supervisory Service (FSS) in South Korea, Lee Bok-hyun, emphasized that no Bitcoin Exchange-Traded Fund (ETF) will be approved in the country without the introduction of new crypto regulations. In a statement on March 5, Lee expressed optimism regarding the potential approval of a Bitcoin spot ETF but also urged caution, highlighting the need for regulatory clarity in the crypto space.
Lee acknowledged differing perspectives among regulators, with some being more cautious about virtual assets. He stressed the necessity of establishing a regulatory framework that enables effective oversight of virtual assets before considering the launch of a Bitcoin spot ETF market in South Korea. This aligns with the regulatory requirements set by Washington-based authorities earlier this year, putting pressure on Seoul to follow suit.
However, the timeline for implementing new crypto regulations may be delayed until after the upcoming legislative elections in April. Industry insiders have indicated that a comprehensive overhaul of existing crypto laws is likely to occur post-election, contingent on the composition of the National Assembly. President Yoon Seok-yeol’s pre-election promises included pro-crypto initiatives, but the actualization of these pledges has been limited, raising questions about the future direction of crypto regulation in South Korea.
Lee highlighted the challenges posed by the current legal framework, particularly in relation to Bitcoin ETF approval. While he remained open to exploring various possibilities, he emphasized the need for a policy review and potential legislative amendments to facilitate regulatory changes. Notably, Lee hinted at a focus on addressing altcoin price manipulation in future regulations, citing the lack of institutional mechanisms to prevent such activities within the crypto market.
Looking ahead, the next National Assembly is expected to take on the task of formulating new crypto regulations, indicating a potential delay in further regulatory actions until late April or beyond. This suggests that the FSS will adopt a cautious approach towards policing the crypto sector and approving crypto ETFs until the regulatory landscape becomes more conducive to such financial products.
In conclusion, the evolving regulatory environment in South Korea underscores the importance of establishing a robust framework for overseeing virtual assets, ensuring market integrity, and fostering investor trust in the burgeoning crypto industry. Stay tuned for updates on how the crypto landscape in South Korea continues to evolve in response to changing regulatory dynamics and market demands.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
