Korean financial regulators are facing increased pressure to approve cryptocurrency exchange-traded funds (ETFs) following the recent approval of Bitcoin and Ethereum ETFs by regulators in the U.S. and Hong Kong. This development has sparked a debate about the role of cryptocurrencies in finance.
According to the Korea Times, local representatives from both the crypto and traditional finance markets are urging Korean regulators to reconsider their stance on digital assets. A spokesperson for Xangle, a Seoul-based crypto data provider, criticized Korea’s current approach as “outdated” and suggested that recent moves in the U.S. would likely increase pressure on Korean regulators.
“Given the circumstances, the SEC’s decision on Ethereum is expected to push Seoul’s financial regulators to reevaluate their regulations against digital assets,” said a spokesperson for Xangle.
The frustration with Seoul’s hesitance extends beyond the crypto sector. Jung Eui-jung, head of the Korean Stockholders’ Alliance, emphasized the importance of following the U.S. example by endorsing Bitcoin and Ethereum ETFs.
“We need to ensure that investors in both traditional finance and digital assets remain in Korea. Who would want to invest in a market that lags behind in a fast-changing regulatory environment?” Jung Eui-jung remarked.
Jung warned that if Seoul regulators continue to make little progress while the U.S. advances, investors might move their funds to U.S. markets, adding that it will be a “matter of time before the U.S. fully opens the door for other lesser-traded cryptocurrencies.”
Summary Review: As global regulatory landscapes evolve, Korean authorities are under mounting pressure to adapt and remain competitive in the fast-paced world of digital finance. The recent approval of Bitcoin and Ethereum ETFs in the U.S. and Hong Kong has intensified calls for South Korea to update its regulations. Failure to do so could result in a capital flight to more progressive markets, underscoring the need for timely and forward-thinking regulatory changes to keep pace with global financial innovations.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
