Pressure is mounting on South Korean financial regulators to approve cryptocurrency exchange-traded funds (ETFs) as the U.S. and Hong Kong regulators have recently given the green light to Bitcoin and Ethereum ETFs. This move has sparked a debate on the role of crypto in the finance sector.
According to the Korea Times, local representatives from both the crypto and traditional finance markets in South Korea have criticized the country’s regulators for their outdated approach. Xangle, a crypto data provider based in Seoul, expressed concern that the recent actions taken by the U.S. could further push Korean regulators to act.
The frustration with South Korea’s slow response is not limited to the crypto sector. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, stressed the importance of following the U.S. example by approving Bitcoin and Ethereum ETFs. He cautioned that if Korean regulators do not make progress while the U.S. moves forward, investors may divert their funds to U.S. markets. Jung added that it is only a matter of time before the U.S. opens up to other less-traded cryptocurrencies.
In light of these developments, the South Korean tax service is reportedly considering a new platform to monitor all crypto transactions.