South Korea's New President is Fulfilling the Bull Cryptocurrency Promise! Here are the Details

The South Korean Financial Services Commission (FSC) aims to prepare a plan for the introduction of spot crypto exchange-traded funds (ETF) in the second half of the year and to complete the relevant regulatory system for stablecoins during the same period.

The newly proposed government's promise implementation plan, presented to the State Affairs Planning Committee, announced that a spot crypto ETF infrastructure will be established, taking into account the risks of the connection between financial markets and virtual asset markets, the effects on the real economy, and the potential benefits it will provide to investors.

FSC plans to build a comprehensive system that includes not only infrastructure components such as the establishment, operation, custody services, and valuation processes of spot ETFs, but also investor protection mechanisms.

President Lee Jae-myung promised during his election campaign that spot ETFs based on crypto assets like Bitcoin would be allowed for issuance, trading, and listing on the exchange. In the U.S., spot Bitcoin ETFs were approved in January of last year, and this development contributed to Bitcoin reaching record levels with institutional capital inflows.

On the other hand, the FSC is continuing the second phase of the legislative process aimed at developing globally harmonized regulations for stablecoins. In this context, the legal framework is planned to be clarified regarding issues such as listing and disclosure obligations of virtual assets, operational rules, and combating unfair practices. Additionally, comparative disclosures will be made to encourage virtual asset exchanges to voluntarily reduce their fees.

*It is not investment advice.

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