Jung Eun-bo, chairman of the Korea Exchange (KRX), emphasized the urgent need for South Korea to introduce cryptocurrency exchange-traded funds (ETFs) to stay competitive in global finance.
He noted that South Korea is the third-largest real cryptocurrency trading market but warned that delaying ETF approval could hinder the country’s progress as other markets advance.
Jung pointed out that, unlike South Korea, the United States has active trading of futures and spot Bitcoin ETFs. He emphasized that introducing crypto ETFs in South Korea could create new opportunities for the financial sector and align it with global trends.
“Cryptocurrency represents a sector capable of generating new value in the financial industry […] We must not delay the introduction of cryptocurrency ETF trading,”
Jung stated.
His comments come at a crucial time as South Korea’s financial sector faces increasing challenges. These include a decreasing investor base and the rise of “zombie companies” that rely on borrowed funds. In light of these issues, there is an emphasis on adopting innovative financial products, particularly cryptocurrency exchange-traded funds (ETFs).
The chairman advocates for the adoption of cryptocurrency ETFs as a means to enhance market stability and provide a regulated option for investors in South Korea. He views this step as crucial for modernizing the country’s financial sector and keeping pace with global trends. Additionally, Jung warns against excessive regulation, which could hinder innovation, and he calls for more flexible rules regarding equity pension fund investments to promote long-term returns and market growth.
Meanwhile, South Korea’s crypto exchange market is facing significant challenges, with a 26% decline in registered virtual asset service providers, dropping from 42 to 31. Token-only exchanges are the most affected, struggling with liquidity and financial instability, resulting in over 90% experiencing total capital erosion in 2023. This has led to the collapse of exchanges like Qubit and Coinbit, while others like GDAC and Huobi Korea have been delisted.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
