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South Korean financial regulators are currently in discussions about potentially allowing spot Bitcoin exchange-traded funds (ETFs) within the country.&nbsp;
Lee Bok-hyun, serving as the governor of the Financial Supervisory Service (FSS), <a href="https://www.reuters.com/technology/skorea-authorities-discuss-prospects-allowing-spot-bitcoin-etfs-2024-03-05/" target="_blank" rel="noopener noreferrer nofollow">revealed</a> ongoing discussions within South Korea’s regulatory bodies.
In a recent radio interview, he highlighted that authorities are contemplating the approval of Bitcoin Spot ETFs, with Lee pointing out the mixed opinions within the regulatory bodies.
He emphasized ann optimistic stance towards virtual assets against a backdrop of more cautious perspectives from other officials.
The discussion around the approval of Bitcoin Spot ETFs in South Korea takes place amid the country’s border <a href="https://crypto.news/arbitrum-to-build-ecosystem-for-blockchain-developers-in-south-korea/" rel="noopener noreferrer nofollow">efforts toward technological innovation</a>.
However, the decision-making process is complicated by differing views within the regulatory community and concerns about Bitcoin’s classification under current financial laws.
Previously, in January, financial authorities indicated a lack of intention to regulate Bitcoin ETFs, but the issue of brokerage sales of these ETFs under the Capital Markets Act has prompted further scrutiny.
As of now, Lee anticipates engaging the public on this matter, especially in light of expected regulatory developments concerning virtual assets later in the year.&nbsp;
You might also like: <a href="https://crypto.news/spot-bitcoin-etfs-start-the-week-strong-attracting-562-million-in-inflows/" rel="noopener noreferrer nofollow"> Spot Bitcoin ETFs start the week strong, attracting $562 million in inflows </a>
The Financial Supervisory Service’s engagements extend beyond domestic dialogues; a <a href="https://crypto.news/south-korea-nft-bitcoin-etf-gary-gensler/" rel="noopener noreferrer nofollow">formal consultation is scheduled</a> with the United States Securities and Exchange Commission (SEC) in May. This upcoming discussion will deliberate on advanced financial instruments, specifically non-fungible tokens (NFTs), and the classification of Bitcoin Spot Exchange-Traded Funds (ETFs) as virtual assets within regulatory frameworks.
The discussion also follows the People Power Party in South Korea’s decision to <a href="https://crypto.news/crypto-reform-takes-a-back-seat-in-south-korea-amid-regulatory-uncertainty-no-btc-etf-plans-in-sight/" rel="noopener noreferrer nofollow">indefinitely postpone</a> its plans to relax cryptocurrency regulations. This pause has affected the proposal to lift the ban on domestic spot Bitcoin exchange-traded funds (ETFs). According to reports from local media, this decision is rooted in the challenges of achieving <a href="https://crypto.news/south-korea-crypto-elections-policy/" rel="noopener noreferrer nofollow">consensus</a> among government and financial institutions regarding the cryptocurrency policy framework.
Globally, the interest in Bitcoin ETFs has seen a significant uptick, notably after the U.S. SEC approved the first spot Bitcoin ETFs on Jan. 10. This decision sparked a <a href="https://crypto.news/spot-bitcoin-etfs-record-new-trading-volume-aths-in-2-straight-days/" rel="noopener noreferrer nofollow">substantial increase in investments</a>, with recent <a href="https://crypto.news/spot-bitcoin-etfs-hit-record-daily-net-inflows-of-631m/" rel="noopener noreferrer nofollow">data</a> showing a surge in U.S. Spot Bitcoin ETF inflows. On March 4, these inflows reached <a href="https://crypto.news/spot-bitcoin-etfs-start-the-week-strong-attracting-562-million-in-inflows/" rel="noopener noreferrer nofollow">$588 million</a>, marking a significant rise from previous figures. Major financial institutions such as Fidelity and <a href="https://crypto.news/blackrock-seeks-to-purchase-more-bitcoin-etfs/" rel="noopener noreferrer nofollow">BlackRock</a> reported inflows exceeding $400 million each, with only the Grayscale Bitcoin Trust experiencing notable outflows.
Meanwhile, South Korean regulators are also intensifying their scrutiny of digital platforms due to privacy concerns. On March 4, South Korea’s Personal Information Protection Commission <a href="https://crypto.news/worldcoin-faces-probe-in-south-korea-over-privacy-concerns/" rel="noopener noreferrer nofollow">announced its decision</a> to investigate Worldcoin (WLD) after reports surfaced of potentially illicit processing of personal information, such as iris data, without individuals’ consent.
Read more: <a href="https://crypto.news/spot-bitcoin-etfs-record-new-trading-volume-aths-in-2-straight-days/" rel="noopener noreferrer nofollow"> Spot Bitcoin ETFs record new trading volume ATHs in 2 straight days </a>

Bitcoin ETFs under review by South Korean regulators, FSS governor shares insights

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