United

Bitcoin ETF

Bitcoin

Gary

<p>Despite the United States embracing the innovative stride of approving a spot Bitcoin ETF, South Korea remains unswayed. The East Asian powerhouse holds firm to its stance, unwavering in the face of what is considered a very important moment in cryptocurrency’s mainstream acceptance. Their unwavering position reflects a deep-rooted caution, demonstrating that not all global players are ready to jump onto the cryptocurrency bandwagon.<a href="https://twitter.com/wublockchain/status/1745386537137914366?s=46&amp;t=hwYzHTuEZToDaG1FB0ZrIg" rel="noopener noreferrer nofollow" target="_blank"> </a></p>
<h3 class="wp-block-heading" id="korea-s-firm-stance-on-virtual-assets">Korea’s Firm Stance on Virtual Assets</h3>
<p>Since 2017, South Korea has enforced a stringent policy against cryptocurrencies. This includes not recognizing them as financial assets and prohibiting financial institutions from investing in such digital currencies. The recent U.S. Securities and Exchange Commission’s (SEC) nod to list and trade Bitcoin’s spot exchange-traded fund (ETF) does little to shift this view. Korea’s financial watchdogs maintain a conservative outlook, emphasizing market stability and investor protection as their core priorities.</p>
<p>This enduring principle was reiterated during a conversation with a Financial Services Commission official. The official underlined the government’s unwavering principle of prohibiting financial institution investments in virtual assets. This policy was cemented on December 13, 2017, when emergency measures were announced, strictly barring financial institutions from engaging in any form of holding, purchasing, or investing in virtual assets.</p>
<h3 class="wp-block-heading" id="global-trends-vs-national-policy">Global Trends vs. National Policy</h3>
<p>It’s intriguing to note the global landscape of Bitcoin ETFs. Countries like Hong Kong, Germany, and Canada have already operationalized spot ETFs. In contrast, the U.S. had previously greenlit futures <a href="https://www.cryptopolitan.com/spot-bitcoin-etfs-trading-volume-2-billion/" data-type="post" data-id="442401" rel="noopener noreferrer nofollow">ETFs</a> before taking the leap into spot ETFs. Yet, these international developments seem to barely ripple the waters of South Korean policy-making.</p>
<p>The South Korean legal framework solidifies this stand. The Capital Markets Act explicitly lists financial investment products, currencies, and general products as the only underlying assets permissible for ETFs. This legislation closes the door on the possibility of integrating virtual assets into such financial instruments.</p>
<p>Furthermore, South Korean financial authorities exhibit a cautionary approach toward amending laws to accommodate virtual assets as underlying assets for ETFs. They argue that recognizing investment in virtual assets could potentially weaken the demand base of the domestic stock market. This perspective is buttressed by the U.S. financial sector’s resilience during virtual asset market downturns, attributed to restrictions on financial institutions from investing in such assets.</p>
<p>SEC Chairman Gary Gansler’s statement on the decision being limited to cash exchange-traded products (ETPs) holding Bitcoin and not extending to virtual asset securities, echoes a similar sentiment of cautious advancement.</p>
<p>Conversely, voices like Kim Jun-woo, CEO of CrossAngle, advocate for South Korea to consider introducing a Bitcoin ETF. He points to the U.S. court’s interpretation, which influenced the SEC’s decision, suggesting that the legal basis for stringent regulation has eroded. This highlights the ongoing debate: should countries preemptively adapt to evolving financial landscapes or follow reluctantly?</p>
<p>In essence, South Korea’s unimpressed response to the U.S.’s approval of a spot Bitcoin ETF underlines a broader narrative. It’s a tale of caution versus innovation, of traditional financial systems grappling with the uncharted territory of digital currencies. As the world watches the cryptocurrency saga unfold, South Korea’s stance serves as a poignant reminder: the path to embracing new financial frontiers is as diverse as the global economy itself.</p>

South Korea is not impressed by US approval of spot Bitcoin ETFs

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