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Bitcoin

Spot Bitcoin ETF In Korea Has New Opportunities To Trade

January 19, 2024 - Around 2 mins mins to read

Key Points:

  • The Presidential Office prompts a review of the spot Bitcoin ETF in Korea amid regulatory uncertainties.
  • Challenges with Bitcoin prompt a focus on the Ethereum spot ETF as the government advises a cautious approach.
South Korea’s Office of the President is urging a reconsideration of the approval for a local spot Bitcoin exchange-traded fund (ETF), according to a presidential office official.
Spot Bitcoin ETF In Korea Has New Opportunities To Trade

Read more: In Which Countries Is Spot Bitcoin ETF Currently Approved?

South Korea’s Presidential Office Calls for Review of Bitcoin ETF in Korea

According to Maeil Business, the Financial Services Commission initially imposed a ‘no trading’ policy on the spot Bitcoin ETF in the U.S. market. An analysis suggests that local investors may find it easier to approach direct investment or futures Ethereum ETF investment.

Despite the government’s efforts to abolish the financial investment income tax, concerns about increased volatility by the end of the year due to virtual asset taxation in 2025 persist.

Sung Tae-yoon, the chief of staff for policy at the presidential office, revealed that the South Korean government is exploring ways to incorporate foreign affairs into local regulations, signaling potential openness to launching a spot Bitcoin ETF in Korea.

This follows a warning from the Financial Services Commission about brokering US-listed Bitcoin spot ETFs, leading several major local securities companies to suspend trading of existing foreign spot Bitcoin ETFs.

As the domestic approval of the spot Bitcoin ETF in Korea faces challenges, attention is shifting to the spot Ethereum ETF, the largest altcoin. The President’s Office emphasized that they have advised the Financial Services Commission not to provide a definitive ‘yes or no’ on the matter.

Responding to inquiries about institutionalizing Bitcoin, the Director of the Presidential Office’s Policy Office, Seong Tae-yoon, highlighted the need to adapt the country’s legal system to accept overseas developments.

In contrast to South Korea’s divided stance, Singapore and Thailand have clarified their positions. The Monetary Authority of Singapore stated that spot Bitcoin ETFs are not granted to local retail investors. Thailand’s Securities and Exchange Commission also announced that it does not plan to approve local firms to launch such ETFs, providing a different perspective on this financial instrument.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.