Business News Report
February 19, 2024

South Korea’s National Power Party Considers Allowing Bitcoin Spot ETFs in Election Promise

In Brief

South Korea’s National Power Party plans to allow spot Bitcoin ETFs and review regulations to permit locally similar products approved by US.

South Korea's National Power Party Considers Allowing Bitcoin Spot ETFs in Election Promise

According to its election promise, South Korea’s right-wing National Power Party is considering allowing spot Bitcoin exchange-traded funds (ETFs) in the country. Additionally, the party intends to review legislative measures to permit cryptocurrency-related investment products locally approved by the United States. 

Presently, trading overseas spot Bitcoin ETFs through domestic securities firms is prohibited in South Korea due to restrictions imposed by financial authorities. The ruling party also intends to explore the gradual removal of the country’s ban on institutional investments in cryptocurrencies and initial exchange offerings (IEOs). 

IEO involves the sale of a new virtual asset through an exchange to ensure a minimum ‘safety mechanism’ by utilizing a virtual asset exchange that has been reported to financial authorities. 

It is planned to initially permit companies, particularly financial investment firms, to invest in virtual assets for asset management purposes and gradually extend this allowance to corporations, prioritizing banks, insurance companies and those firms where the safety of customer funds holds significance.

Additionally, there are plans to establish a “Digital Asset Promotion Committee,” which would have the authority to recommend legislation and enforce penalties concerning digital assets. 

South Korea Reevaluates Attitude Towards Crypto 

Recently, the Office of the President in South Korea has requested its financial regulator to reevaluate the potential approval of a domestic spot Bitcoin ETF.

This request comes in light of a statement from the Financial Services Commission, which indicated that the approval of spot Bitcoin ETFs in the United States would not be a factor influencing the Korean regulator to lift the ban or reconsider it, citing the stability of the financial markets and the protection of investors as the reasons for maintaining the restrictions.

Meanwhile, the National Power Party’s election commitments are strategically aimed at appealing to the votes of South Korean citizens in their 20s and 30s. Data from the National Tax Agency reveals that over 80% of cryptocurrency holders in South Korea belonged to that age group as of 2023.

The National Power Party’s election pledge, promising potential changes in cryptocurrency regulations, indicates that the country is seriously considering integrating digital currencies into its economy in the near future.

Disclaimer

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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