According to Odaily, following the recent approval of the Ethereum ETF19B-4 form by the U.S. Securities and Exchange Commission (SEC), South Korean regulators are facing increasing pressure to approve cryptocurrency ETFs. The SEC's decision on Ethereum is expected to put pressure on South Korean financial regulators, forcing them to reconsider their stance on digital assets.
Unlike the U.S., the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) in South Korea have been 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. These assets include mature financial instruments, securities, international currencies, and commodities, which provide the basis for financial derivatives.
Xangle, a digital currency data provider based in Seoul, has publicly opposed the ban on digital assets in traditional securities markets, calling it 'outdated' and in need of revision to adapt to the increasingly important role of digital assets in modern finance. Jung Eui-jung, head of the Korean Stockholders’ Alliance, also emphasized the importance of Seoul following the U.S. and approving Bitcoin and Ethereum ETFs. Jung warned that if South Korean regulators continue to make no progress while the U.S. is making advances, investors may shift their funds to the U.S. market, stating that 'it is only a matter of time before the U.S. fully opens the door to other cryptocurrencies with smaller trading volumes.'