South Korea’s ruling Party, the People Power Party (PPP), has expressed its intention to explore the legalization of spot Bitcoin exchange-traded funds (ETFs) in the country.
This plan was revealed as a part of the Party’s campaign promises for the upcoming general election in April, according to a report by local media outlet News1 on Monday, February 19, 2024.
According to the report, the PPP is considering introducing virtual asset products approved by developed nations, such as the United States. This includes the possibility of introducing spot Bitcoin ETFs under stringent investor protection measures.
The PPP also noted its plans to introduce more initiatives to promote the cryptocurrency industry, one of which is establishing a “Digital Asset Promotion Committee.” This committee, according to the Party, will play a crucial role in proposing legislation aimed at regulating the crypto sector and enforcing sanctions against those who violate the regulations.
Another of the Party’s plans is to introduce avenues that allow investment companies and then banks or insurance organizations to acquire virtual currencies for asset management purposes.
South Korea has emerged as a significant player in the global cryptocurrency sector, and its government, in recent times, has taken proactive measures to strengthen the regulatory framework, particularly in response to issues like the Terra ecosystem collapse.
In January 2024, the South Korean Financial Services Commission (FSC) restated its position on forbidding financial organizations from offering any form of virtual asset ETFs. However, it noted that following the President’s Office’s urging to adopt a more flexible approach to the digital asset industry, it is actively seeking ways to make this a reality.
The FSC’s chair recently disclosed the agency’s intention to engage with the United States Securities and Exchange Commission (SEC) to discuss matters related to spot Bitcoin exchange-traded funds (ETFs).
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