South Korea Needs to Institutionalize Cryptocurrencies Urgently
Date: 2024-12-16 Author: Gabriel Deangelo Categories: IN WORLD
The head of the Korea Stock Exchange, Jeong Eun-bo, emphasized in an interview with the South Korean newspaper Maeil Kyungjae that the crypto market needs to solve regulatory problems. According to him, traditional financial markets can no longer ignore the scale and influence of cryptocurrencies.
Jeong said that cryptocurrencies were actively discussed at the World Federation of Exchanges (WFE) summit. The participants of the meeting came to the conclusion that it will be difficult for stock exchanges to maintain profitability if they continue to ignore virtual assets.
“The average daily trading volume in the domestic stock market is about 20 trillion won (approximately $ 14 billion). However, the virtual currency market has already exceeded this figure since Donald Trump was elected president of the United States,” Jeong said.
He also warned that without clear regulation, virtual assets will be perceived solely as a speculative instrument. In this case, South Korea risks losing its position on the international stage.
In recent years, South Korea has become one of the leading countries in the popularity of cryptocurrencies. However, the market remains predominantly in the hands of private investors. Companies cannot yet buy cryptocurrency from their account balances, and Bitcoin ETFs have not yet been approved in the country.
Some firms with small stakes in crypto exchanges are listed on the Korea Stock Exchange. Their shares often demonstrate significant volatility depending on changes in Bitcoin prices.
Experts in the country's financial industry believe that banning Bitcoin spot ETFs while allowing leveraged trading for traditional ETFs looks illogical from an investor protection perspective.
Jung Eun-bo is a graduate of Seoul National University and a PhD in economics from Ohio State University. His call for the institutionalization of cryptocurrencies shows that the Korean exchange is looking to adapt to changing global financial market conditions and capitalize on the growing popularity of digital assets.
