The post South Korea Under Pressure to Embrace Crypto ETFs After US, Hong Kong Moves appeared on BitcoinEthereumNews.com.

The SEC’s sudden approval of Ethereum ETFs has sparked competition among global financial markets, especially regarding regulatory stances on digital assets. Excitement grew when Hong Kong welcomed ETFs, keeping the financial scene vibrant. Meanwhile, South Korea, a major player in the crypto world, is debating whether to approve these financial instruments. Here’s a deep dive into this exciting update. South Korea Under Pressure: Will They Follow the SEC’s Lead? Local reports reveal that Korean regulators are feeling pressure to approve cryptocurrency ETFs after the U.S. SEC’s approval of spot Ethereum ETFs. This decision by the SEC may influence Seoul’s financial authorities to reassess their cautious approach to digital assets. However, the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) remain hesitant to allow crypto asset trading in the mainstream securities market. A Tale of Two Markets: U.S. vs. South Korea Unlike the U.S., which approved Bitcoin ETFs in January 2024 and Ethereum ETFs in May 2024, South Korean regulators have been cautious about incorporating digital assets into their traditional financial systems. The FSC insists that ETFs must comply with the Capital Markets Act, restricting them to conventional assets. They argue that including digital assets could disrupt the financial system. Calls for Revision Critics say South Korea’s regulations are outdated and fail to recognize the growing importance of digital assets in modern finance. Xangle, a leading digital currency data provider in Seoul, has criticized the ban on digital assets in traditional securities markets. They advocate for regulatory reforms to keep up with global trends. Global Pressure Mounts: Korea at a Crossroads The global acceptance of ETH ETFs, bolstered by Hong Kong’s endorsement, has increased pressure on Korean regulators to rethink their stance on digital assets. Jung Eui-jung, head of the Korean Stockholders’ Alliance, stresses the need for Korea to follow…

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Filed under: News - @ May 25, 2024 6:22 pm