South Korea to facilitate Bitcoin Exchange-Traded Funds (ETF) transactions directly this year
Revamped Article:
South Korea's People Power Party is envisioning a radical transformation in their virtual asset landscape, with a proposed lineup of seven significant law amendments. One of these game-changing proposals is the anticipated launch of a Bitcoin ETF this year, offering locals a unique opportunity to invest in crypto-linked exchange-traded funds (ETFs).
According to local media Edaily, trading for digital asset spot ETFs will become a reality this year. For the first time, South Korean traders will be able to invest in ETFs tied to leading cryptocurrencies such as Bitcoin and Ethereum.
Representative Park Soo-min expressed enthusiasm about the upcoming crypto-backed ETFs, reasoning that with countries like the U.S., Hong Kong, and the U.K. leading the way, it's high time South Korea joined the fray.
"Hong Kong and the U.K. have already approved spot ETF trading in succession. Korea can't afford to lag behind," said Park.
The crypto ETF announcement is part of the ruling party's wider regulatory changes aimed at boosting Korea's crypto industry. From the second quarter of this year, companies will be authorized to trade in digital assets.
Interestingly, data suggests that hundreds of South Korean officials hold crypto assets worth 14.4 billion Korean won. To facilitate institutional participation in the crypto market, the government plans to create and institutionalize around 3,500 corporations and institutions this year, including a substantial number of large-scale listed corporations and professional investment firms.
Another significant development is the proposed abolishment of the "One Crypto Exchange, One Bank" policy. Under this policy, South Korean crypto exchanges have been restricted to partnerships with a single bank at a time, primarily to combat financial crimes like money laundering and to detect suspicious transactions. However, this policy has been found to be overly restrictive for crypto exchanges aiming to forge partnerships with multiple banks.
Furthermore, the People Power Party has announced plans to develop a token securities STO bill, which will encompass a stablecoin regulation system adhering to global norms, enhancements to digital asset laws, and a novel taxation system for crypto assets.
"We won't let outdated regulations hinder the growth of virtual assets that can drive economic growth," asserted Rep. Park.
To facilitate these changes, the Party aims to set up a special committee on virtual assets under the People Power Party presidential candidate. This committee will spearhead the institutionalization of virtual assets, establishing a foundation for industrial innovation within the crypto arena.
Recent reports by Hana Bank have revealed an encouraging trend among young South Korean investors, with an increasing preference for crypto investments. Remarkably, over 30% of South Korea's wealthy investors are embracing crypto as a long-term wealth strategy, outpacing the interest in gold or property.
These developments signify a promising future for South Korea's crypto market, as it moves towards greater regulation, competition, and trust among investors. While the original timeline for the Bitcoin ETF launch in 2022 didn't materialize due to the country's regulatory framework, recent advancements suggest that South Korea's crypto landscape may be on the cusp of a significant transformation.
[1] Japan's evolving regulatory approach towards crypto-ETFs has exerted influence on South Korea's decision-making.[2] The South Korean People Power Party's crypto policy manifesto outlines its commitment to fostering innovation and building trust in the market.
- The South Korean People Power Party's proposed Bitcoin ETF is expected to be listed this year, following Japan's evolving regulatory approach towards crypto-ETFs.
- South Korean traders will soon invest in crypto-linked ETFs tied to leading cryptocurrencies such as Bitcoin and Ethereum, due to the upcoming crypto-backed ETFs.
- The People Power Party plans to create and institutionalize around 3,500 corporations and institutions this year, including a substantial number of large-scale listed corporations and professional investment firms, to facilitate institutional participation in the crypto market.
- The proposed token securities STO bill, including a stablecoin regulation system, enhancements to digital asset laws, and a novel taxation system for crypto assets, will be developed by the People Power Party.
- To support these changes, the Party aims to establish a special committee on virtual assets under the People Power Party presidential candidate, focusing on the institutionalization of virtual assets.
- Remarkably, over 30% of South Korea's wealthy investors are adopting crypto as a long-term wealth strategy, outpacing the interest in gold or property, according to recent reports by Hana Bank.
- The South Korean crypto market is moving towards greater regulation, competition, and trust among investors, as it undergoes significant transformations following the People Power Party's regulatory changes aimed at boosting the crypto industry.
