The US SEC's decision to approve an Ethereum ETF is putting great pressure on South Korea, forcing the country to reconsider its policy of banning cryptocurrencies on the traditional stock market.
According to local media on May 27, after the US Securities and Exchange Commission (SEC) approved a spot Ethereum ETF, South Korea is facing a wave of strong opposition to the current policy, which prohibits Cryptocurrency-related products on the traditional stock market.
Under current law, ETFs in Korea are only allowed to be linked to traditional underlying assets such as stocks, international currencies and commodities. This makes many experts believe that South Korea's policy is outdated and needs to change to accommodate the development of the cryptocurrency industry in the world.
Xangle, a Seoul-based cryptocurrency data and information provider, has spoken out against the regulation, saying it is “outdated” and needs to be revised to reflect its growing importance. rise of digital assets in the sector of modern finance.
“In the current context, the SEC's decision on Ethereum will likely put pressure on Seoul's financial regulators to reconsider cryptocurrency regulation,” a Xangle representative said.
Jung Eui-jung, head of the Korea Shareholders Alliance, also said that pursuing the US path and approving ETFs for Bitcoin and Ethereum is essential to retain domestic and foreign investors. “Who wants to invest in a market that is slow to innovate and backward compared to the world?”, Mr. Jung asked.
He warned that if South Korea continues to delay while the US takes big steps in digital assets, investors may turn to the US market. “It's only a matter of time before the US fully opens up to other less-traded cryptocurrencies. Korea should at least approve ETFs for Bitcoin and Ethereum,” Mr. Jung said.
Meanwhile, Governor of the Korea Financial Supervisory Service (FSS) Commission, Lee Bok-hyun, said that the public discussion mentality of allowing cryptocurrencies to enter traditional finance could be established. established in the second half of this year.
