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Korean Authorities Under Pressure Over US and Hong Kong Crypto ETF Moves
Korean regulators appear to be under pressure as those in the United States and Hong Kong have approved Bitcoin and Ethereum ETFs, sparking debate over the role of cryptocurrencies in finance.
South Korea’s financial regulators are under increasing pressure to approve exchange-traded funds (ETFs) for cryptocurrencies, following the indications of the US Securities and Exchange Commission (SEC) recent approval of spot ETFs on Ethereum, the Korea Times relationshipsciting local representatives from the cryptocurrency markets and traditional finance.
A spokesperson for Xangle, a Seoul-based crypto data provider, criticized Korea’s current approach as “outdated” and suggested that recent actions in the United States would likely put more pressure on Korean regulators.
“Under the circumstances, the SEC’s decision on Ethereum is expected to prompt financial regulators in Seoul to reconsider its regulations against digital assets.”
Xangle spokesperson
The frustration with Seoul’s hesitation extends beyond the cryptocurrency sector. Jung Eui-jung, head of the Korean Shareholders’ Alliance, stressed the importance of following the example of the United States by supporting Bitcoin and Ethereum ETFs.
“In order to ensure that investors, both in traditional finance and digital assets, do not leave Korea. Who would want to invest their money in a market that lags behind the rapidly evolving regulatory landscape?”
Jung Eui-jung
Jung warned that if regulators in Seoul continue to make little progress as the United States advances, investors may shift their funds to U.S. markets, saying it will be “a matter of time for the United States to fully open the door to other least traded cryptocurrencies”.