South Korean Exchange Chairman Jeong Eun-Bo recently sought the country's approval of funds (ETFs) traded on crypto exchanges. Amid the crisis in the country's stock market, he has remodeled South Korea's financial industry, urging it to strengthen its markets and compete with other countries.
Korea approved “needs” Crypto ETFS
On Sunday, South Korea's stock exchange chairman Jeong Eun-Bo sought approval for the Crypto ETF. In an interview with South Korea Economic Daily, John explained the stock market crisis and the need to modernize the country's financial industry.
The Korean stock market is suffering from a decline in the base of retail investors, with the South Korean combined stock index (KOSPI) falling 15% in the second half of 2024, according to the report.
Additionally, investors are increasingly complaining about allegations of unfair trading using private information, repeated spinoffs, unforgettable capital increases and postponement of “zombie companies.”
Jeong emphasized that South Korea is the world's third largest digital asset trading country, pointing out that the crypto industry is a sector that “can create new value” in the financial sector.
Delaying approval of the much-anticipated crypto-based ETF could harm the competitiveness of the Korean market against other countries. The chief of the Korean Exchange pointed out that investment products are successfully listed and actively traded in the US, suggesting that South Korean regulators should approve them as soon as possible.
Korea is the third largest cryptocurrency trading country in the world. Crypto is a field in which new value can be created in the financial industry. The US has actively traded funds traded on exchanges. You need to approve Crypto ETF transactions earlier than slowing them down.
US crypto ETFs affect regulatory changes in South Korea
Jeong said the political sphere would not “know the reality” of the market, which led to excessive legislation that stifled market growth. South Korea's regulator, the Financial Services Commission (FSC), banned Crypto ETFs in 2017, reaffirming its stance when the Securities and Exchange Commission (SEC) approved the investment product a year ago .
However, the success of US spot Bitcoin and Ethereum ETFs appears to have influenced the ongoing regulatory shift in the FSC. South Korea's Watchdog is moving from strict regulations and will consider the ban through a newly established advisory group for digital assets.
The South Korean Exchange Chairman repeatedly pushed South Korean regulators to urge them to assess and incorporate digital assets into institutional funds to stimulate local markets and prevent them from falling behind in the international market.
In January, Jeong revealed plans for the stock exchange to “explorate” the approval of crypto-based ETFs. He explained that the South Korean capital market faced major challenges last year, weakening the potential for growth of local businesses.
The Chief of the Korean Exchange added that there is a risk that markets facing these challenges in 2025 are once again facing these challenges due to disadvantaged domestic and global economic conditions. Similarly, Seo Yoo-Seok, chairman of the Korean Financial Investment Association (KOFIA), recently sought approval for the investment product.
During the meeting, the chairman focused on the potential of digital asset markets, suggesting that the country must follow the US lead and approve financial products. SEO has affirmed that investment products can increase market transparency, increase institutional participation and solidify Korea as a leader in digital asset adoption.
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