Korean regulators are feeling the heat after the approval of Bitcoin and Ethereum ETFs by U.S. and Hong Kong regulators, sparking a debate on the role of cryptocurrency in finance.
According to the Korea Times, South Korean financial authorities are facing increasing pressure to greenlight exchange-traded funds (ETFs) for cryptocurrencies. This comes in the wake of the SEC’s recent approval of Ethereum ETFs, with representatives from both the crypto and traditional finance sectors in Korea weighing in on the issue.
A spokesperson from Xangle, a crypto data provider based in Seoul, criticized Korea’s current stance as being “outdated” and suggested that the developments in the U.S. would add further pressure on Korean regulators to act.
The frustration over Seoul’s hesitancy is not limited to the crypto industry. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, highlighted the importance of following the U.S.’s lead in approving Bitcoin and Ethereum ETFs.
Jung cautioned that if Korean regulators do not make significant progress while the U.S. moves forward, investors may redirect their investments to U.S. markets. He warned that it is only a matter of time before the U.S. opens its doors to other lesser-known cryptocurrencies.
In related news, the Korean tax service is reportedly considering a new platform to monitor all crypto transactions.