US and Hong Kong crypto ETF decisions put Korean authorities in a tight spot
Korean authorities are feeling the pressure as regulators in the U.S. and Hong Kong have given the green light to Bitcoin and Ethereum exchange-traded funds (ETFs), leading to a debate on the role of cryptocurrencies in the financial sector.
According to the Korea Times, representatives from both the crypto and traditional finance markets in Korea are urging the country’s financial regulators to approve ETFs for cryptocurrencies. They point to the recent approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) as a catalyst for change.
Xangle, a crypto data provider based in Seoul, criticized Korea’s current approach as outdated and suggested that the actions taken in the U.S. would further intensify the pressure on Korean regulators.
The frustration with Seoul’s hesitance goes beyond the crypto sector. Jung Eui-jung, the 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. moves forward, investors may shift their funds to U.S. markets. He stated that it is only a matter of time before the U.S. fully opens the door for other less-traded cryptocurrencies.
In related news, the Korean tax service is reportedly considering the development of a new platform to monitor all crypto transactions.
