South Korean Democratic Party initiates review of ban on spot Bitcoin ETFs
Date: 2024-05-08 Author: Oliver Abernathy Categories: IN WORLD
South Korean politicians are raising the possibility of reviewing the ban on the launch of spot Bitcoin exchange-traded funds (BTC) in the local market. According to South Korean media, the country's Democratic Party is going to ask local financial regulators to consider this issue. They intend to follow the example of the United States and Hong Kong, where spot Bitcoin ETFs are already available to investors.
After winning the April election this year, the Democratic Party announced its intention to allow local financial institutions to launch spot cryptocurrency ETFs. They also promise to enable retail investors to participate in the market through special tax-free accounts.
Preparations are now starting for the 22nd National Assembly of South Korea, which is scheduled for June. Representatives of the Democratic Party plan to ask the Financial Services Commission to reconsider its attitude towards spot Bitcoin ETFs and allow them to be launched on the local market.
Currently, the Financial Services Authority of Korea (FSC) does not allow the sale or trading of cryptocurrency funds. However, politicians intend to change this situation. If the FSC continues its position, the Democratic Party is considering changes to financial rules to support the development of the cryptocurrency sector in the country.
Government officials note that the development of the cryptocurrency sector can have a positive impact on the country’s economy and provide new opportunities for investors. They hope that reconsidering the ban on spot Bitcoin ETFs will be the first step towards developing this area in South Korea.
