South Korean media: Progress on US Ethereum spot ETF puts pressure on South Korean regulators

South Korean regulators are facing increasing pressure to approve cryptocurrency ETFs following the recent approval of the US SEC’s 19B-4 form for a spot Ethereum ETF. According to local media reports, the US SEC’s decision on Ethereum is expected to put pressure on South Korean financial regulators to reconsider their stance on digital assets. Unlike the United States, South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) are cautious about introducing crypto asset trading in traditional securities markets. According to the FSC, ETFs must strictly comply with the Capital Markets Act, which stipulates that ETFs must only be linked to traditional underlying assets. These assets include established financial instruments, securities, international currencies, and commodities, which provide the basis for financial derivatives. According to the Korea Times, Xangle, a Seoul-based digital currency data provider, publicly opposed the ban on digital assets in the traditional securities market, calling it “outdated” and in need of revision to accommodate the growing importance of digital assets in modern finance. Jung Eui-jung, head of the Korean Stockholders’ Alliance, also stressed the importance of Seoul following the US example and approving Bitcoin and Ethereum ETFs. Jung warned that if South Korean regulators continue to make no progress while the United States is making progress, investors may move funds to the U.S. market, saying that "it will be a matter of time before the U.S. fully opens its doors to other less traded cryptocurrencies." (Cointelegraph)