Ethereum

<p>The recent 19b-4 approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is putting pressure on South Korean financial regulators <a href="https://www.koreatimes.co.kr/www/biz/2024/05/602_375299.html" rel="noopener noreferrer nofollow">to revisit</a> their policies on digital assets. The SEC&#39;s <a href="https://cointelegraph.com/news/sec-spot-ether-etf-approved#:~:text&#61;The%20U.S.%20Securities%20and%20Exchange,treating%20ETH%20as%20a%20security." rel="noopener noreferrer nofollow">decision to allow</a> ETFs for Ethereum, the world&#39;s second-largest cryptocurrency, on May 24, 2024, follows its earlier <a href="https://cointelegraph.com/news/sec-spot-bitcoin-etf-approvals" rel="noopener noreferrer nofollow">endorsement of Bitcoin ETFs</a> in January 2024. This move is seen as a significant step in merging traditional finance with the digital asset sector.</p><h2 id="header-0">Korean regulatory caution</h2><p>In contrast to the progressive stance in the U.S., the Korean Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have maintained a <a href="https://cointelegraph.com/news/south-korea-backtracks-spot-bitcoin-etf" rel="noopener noreferrer nofollow">cautious approach</a> regarding the integration of crypto assets into traditional securities markets. According to current regulations under the Capital Markets Act, ETFs in Korea are limited to traditional underlying assets such as financial instruments, securities, international currencies and commodities. These foundations are crucial for the creation of financial derivatives, leaving little room for digital assets under current laws.</p><h2 id="header-1">Calls for regulatory reforms and market implications</h2><p>The decision by the SEC is expected to influence the Korean regulators to update their views on digital assets, according to local media and industry experts. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, has advocated for Korea to emulate the U.S. by approving Bitcoin and Ethereum ETFs. He expressed concerns that continued regulatory hesitance could lead to investor funds migrating to more progressive markets like the U.S., potentially positioning the U.S. to broaden its crypto market further. Xangle, a digital currency data provider in Seoul, has also criticized the current regulations as outdated, emphasizing the need for revisions to accommodate the increasing relevance of digital assets in global finance.</p>

Korean regulators pressured to approve crypto ETFs following ETH ETF approval in the U.S.

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