According to Odaily Planet Daily, after the US SEC recently approved the spot Ethereum ETF 19B-4 form, South Korean regulators are facing increasing pressure to approve cryptocurrency ETFs. The US SEC's decision is expected to put pressure on South Korean financial regulators to reconsider their stance on digital assets. South Korea's Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) are cautious about introducing crypto asset trading in traditional securities markets.
According to FSC regulations, ETFs must strictly comply with the Capital Markets Act, which stipulates that ETFs must only be linked to traditional underlying assets. Seoul-based digital currency data provider Xangle has publicly opposed the ban on digital assets in the traditional securities market, calling it "outdated" and in need of revision to accommodate the growing importance of digital assets in modern finance.
Jung Eui-jung, head of the Korean Stockholders’ Alliance, stressed the importance of Seoul following the U.S. lead and approving Bitcoin and Ethereum ETFs. Jung warned that if South Korean regulators continue to make no progress while the U.S. is making progress, investors may move their funds to the U.S. market.
