As a seasoned analyst with years of experience navigating the dynamic world of global finance, I find South Korea’s recent move towards crypto regulation not only encouraging but also prudent. Having witnessed the rapid growth and transformation of various financial markets over my career, I understand the importance of striking a balance between fostering innovation and ensuring investor protection.
A new committee will supposedly be established within South Korea’s monetary regulatory body for reevaluating the authorization process of crypto exchange-traded funds (ETFs) and exploring the possibility of allowing businesses to open cryptocurrency accounts, according to recent reports.
South Korea is contemplating the potential approval of exchange-traded funds (ETFs) for spot cryptos and corporate crypto accounts, a move that comes as they tread carefully in regulating digital assets, under their recently formed Virtual Assets Committee.
Based on a report by News1 Korea dated October 10th, the committee, led by the Financial Services Commission’s vice chairman, will consist of members from various government departments and private-sector experts. While Bitcoin (BTC) and Ethereum (ETH) have received approval for spot ETFs from regulators in the U.S. and Hong Kong, South Korea has yet to authorize such products, and it is still illegal for corporations to hold cryptocurrency accounts.
The report fails to provide details about the exact schedule for South Korean officials to reconsider the authorization of cryptocurrency ETFs.
South Korea speeds up with crypto regulation
The regulatory body in South Korea is making a move due to increasing demands for reform in the crypto sector, as the domestic cryptocurrency market continues to develop. At present, the Financial Services Commission (FSC) is reviewing applications for renewal from virtual asset service providers that initially registered in 2021. The regulator is simultaneously working on modifications to the Specific Financial Information Act, aiming to improve control over market manipulation and unjust trading activities, according to the report.
As a researcher delving into this fascinating realm, I’ve learned that the Financial Services Commission (FSC) is mulling over “Phase 2 legislation.” This subsequent phase aims to strengthen regulatory oversight for cryptocurrency businesses, particularly when it comes to the procedures for issuance and listing. This move comes in the wake of the enactment of the Virtual Asset User Protection Act, which was introduced in July.
South Korea has been progressively strengthening its supervision over cryptocurrencies, aiming for a harmonious blend of market development and investor protection. Consequently, significant domestic cryptocurrency exchanges like Upbit are facing more intense examination. For instance, the Financial Services Commission (FSC) is currently examining the exchange’s influence and connections with K Bank.
In this region, Upbit – accounting for approximately 80% of the market share – stands as the largest cryptocurrency exchange. On a global scale, it ranks fifth in terms of daily trading volume.
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2024-10-10 16:22