Korean authorities under pressure amid US, Hong Kong crypto ETF moves

Korean regulators appear to be under pressure as US and Hong Kong regulators approve Bitcoin and Ethereum ETFs, sparking debate over crypto’s role in finance.

Following the U.S. Securities and Exchange Commission (SEC)’s recent approval of spot Ethereum ETFs, South Korean financial regulators are restricting exchange-traded funds for cryptocurrencies, the Korea Times reported, citing local representatives of both crypto and traditional markets. (ETFs) are under increasing pressure to approve. financial markets.

A spokesman for Xangle, a Seoul-based crypto data provider, criticized Korea’s current approach as “outdated” and suggested that recent actions in the US would likely put more pressure on Korean regulators.

“Under these circumstances, the SEC’s decision on Ethereum on Thursday is expected to put pressure on Seoul’s financial regulators to reconsider their regulations on digital assets.”

Xangle Spokesperson

Frustration with Seoul’s hesitation extends beyond the crypto industry. Korean Shareholders Association president Jung Eui-jung emphasized the importance of following the US example by supporting Bitcoin and Ethereum ETFs.

“To ensure that investors in both traditional finance and digital assets do not leave Korea. “Who would want to invest their money in a market that is lagging behind a rapidly changing regulatory environment?”

Jung Eui-jung

Jung warned that investors could shift their funds to U.S. markets if Seoul regulators continue to make little progress as the U.S. moves forward, saying it will be “only a matter of time before the U.S. fully opens the door to other, less traded cryptocurrencies.”