Korean officials facing mounting pressure as US and Hong Kong crypto ETF initiatives unfold

Korean regulators are facing increasing pressure to approve cryptocurrency exchange-traded funds (ETFs) as the U.S. Securities and Exchange Commission (SEC) and Hong Kong regulators have recently given their approval. This has sparked a debate on the role of cryptocurrencies in the finance industry, according to the Korea Times. Representatives from both the crypto and traditional finance markets in Korea have criticized the country’s current approach as outdated, with the recent actions in the U.S. likely to put more pressure on Korean regulators, according to a spokesperson from Seoul-based crypto data provider Xangle. The frustration with Seoul’s hesitance extends beyond the crypto sector, as Jung Eui-jung, head of the Korean Stockholders’ Alliance, emphasized the importance of following the U.S. example by endorsing Bitcoin and Ethereum ETFs. Jung warned that if Korean regulators continue to make little progress while the U.S. advances, investors may shift their funds to U.S. markets. He also stated that it will only be a matter of time before the U.S. fully opens the door for other less-traded cryptocurrencies. The Korean tax service is reportedly considering a new platform to monitor all crypto transactions.