South Korea’s New President Delivers on Bullish Cryptocurrency Promise – Here Are the Details

South Korea’s Financial Services Commission (FSC) aims to prepare a plan for the promotion of spot cryptocurrency exchange-traded funds (ETFs) in the second half of the year and complete the relevant regulatory system for stablecoins during the same period.

Within the scope of the new government’s promise implementation plan submitted to the State Affairs Planning Committee, the FSC announced that a spot crypto ETF infrastructure will be created by taking into account the risks of the connection between financial markets and virtual asset markets, the impact on the real economy and the potential benefits it will provide to investors.

The FSC plans to build a comprehensive system that includes infrastructure elements such as the establishment, operation, custody services and valuation processes of spot ETFs, as well as investor protection mechanisms.

President Lee Jae-myung promised during his election campaign that spot ETFs based on crypto assets like Bitcoin would be allowed to be issued, listed and traded. Spot Bitcoin ETFs were approved in the US in January of last year, and this development contributed to Bitcoin reaching record levels through institutional capital inflows.

On the other hand, the FSC is continuing its second-stage legislative process to develop globally harmonized regulations for stablecoins. In this context, it is planned to clarify the legal framework on issues such as listing and disclosure obligations of virtual assets, business rules, and combating unfair transactions. In addition, comparative statements will be made to encourage virtual asset exchanges to voluntarily reduce their fees.

*This is not investment advice.