According to TechFlow, on October 10, The Block reported that the Financial Services Commission (FSC) of South Korea recently stated that it will re-evaluate the lifting of the ban on spot cryptocurrency ETFs and institutional accounts trading on cryptocurrency exchanges. This news marks a major shift in the regulator’s attitude towards digital assets.

It is reported that the FSC's newly established cryptocurrency committee will review the current ban. Previously, South Korean lawmakers have been calling for a change in the status quo, with both the ruling Democratic Party and the opposition party promising to approve local spot Bitcoin ETFs during the general election campaign earlier this year. Since 2018, South Korean institutional investors have been effectively banned from opening trading accounts on cryptocurrency exchanges. This policy adjustment may open up new channels for institutional investors to participate in the cryptocurrency market.

Meanwhile, FSC Chairman Kim Byung-hwan said he would investigate the monopoly structure of South Korea's digital asset exchanges. Data shows that among the five fully licensed exchanges in South Korea, Upbit processed more than $1.17 billion in trading volume in the past 24 hours, accounting for more than 61% of the market share. In March this year, its average monthly market share soared to 80%. Legislator Lee Kang-il also expressed concerns about the financial relationship between Upbit and its partner bank, K-bank. He pointed out that Upbit's deposits account for 20% of K-bank's total deposits, warning that if the partnership between the two is interrupted, it may trigger a run risk.