PANews reported on January 4 that according to Cryptoslate, Eun-Bo Jeong, chairman of the Korea Exchange (KEX), has expressed interest in launching a cryptocurrency-based ETF this year to meet global demand for such products. At the opening ceremony of the Securities and Derivatives Market on January 2, Eun-Bo Jeong emphasized the importance of innovative financial products for revitalizing the Korean capital market.
Eun-Bo Jeong highlighted the economic challenges faced over the past year, which include a shrinking domestic economy, slowing export growth, and geopolitical tensions. He explained that these factors have caused South Korea's financial markets to lag behind their global peers. Inspired by the successful launch of Bitcoin-related financial products internationally, the exchange plans to explore new avenues, including launching cryptocurrency-related ETFs, to address these issues. The announcement marks a possible shift in South Korea's previous stance. Last year, South Korea's Financial Services Commission (FSS) banned asset management companies from offering ETFs tied to cryptocurrency-related businesses such as Coinbase.
However, due to regulatory barriers, the potential of crypto ETFs remains uncertain. CryptoQuant CEO Ki Young Ju expressed concerns about South Korea's readiness to approve such products. Ju compared South Korea's cautious regulatory stance to that of the U.S. SEC, whose resistance to crypto ETFs has delayed their launch for more than a decade, until 2024.