Korean authorities under pressure amid US, Hong Kong crypto ETF moves

As a long-term crypto investor with experience in both the Korean and international markets, I share the sentiment expressed by the representatives of Xangle and the Korean Stockholders’ Alliance. The ongoing regulatory hesitance in South Korea regarding cryptocurrency ETFs is increasingly frustrating for those of us who see the potential benefits of this emerging asset class.

Korean regulatory bodies find themselves facing scrutiny following the approval of Bitcoin and Ethereum exchange-traded funds (ETFs) by their US and Hong Kong counterparts, igniting discussions about cryptocurrency’s place within the financial sector.

As a financial analyst, I can tell you that there is growing anticipation for South Korean financial regulators to give the green light to exchange-traded funds (ETFs) based on cryptocurrencies. This comes in the wake of the US Securities and Exchange Commission’s (SEC) recent decision to approve spot Ethereum ETFs, as reported by The Korea Times, according to local sources from both the crypto and traditional finance sectors.

An representative from Xangle, a Seoul-based cryptocurrency data provider, expressed criticism towards Korea’s present regulatory stance, labeling it as “outdated.” They further indicated that current developments in the United States could intensify the need for regulatory adjustments in South Korea.

Given the current situation, the SEC’s decision on Ethereum announced on Thursday is expected to prompt Seoul’s financial regulatory authorities to reevaluate their stance on digital assets.

Spokesperson for Xangle

As a researcher studying the financial landscape in Seoul, I can’t help but express my growing discontent with the city’s reluctance to move forward. This issue transcends the cryptocurrency sector, as even traditional stock market leaders share my perspective. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, strongly advocates for Seoul to adopt a more progressive stance by endorsing Bitcoin and Ethereum Exchange-Traded Funds (ETFs), following the lead of the United States.

“It is important for investors in both conventional finance and cryptocurrencies to avoid leaving the Korean market. Why put your funds into a market that trails behind the dynamic regulatory developments?”

Jung Eui-jung

If Seoul regulators fail to make significant strides in their regulatory efforts while the U.S. moves forward, investors may start transferring their funds to American markets. This could lead to an increasing opportunity for less-traded cryptocurrencies in the U.S., a situation that Jung described as “only a matter of time.”

Read More

2024-05-24 15:01