South Korea’s prime monetary regulator is engaged on an in depth roadmap to help the launch of digital asset spot exchange-traded funds.
Based on a June 19 report by Herald Financial system, the Monetary Providers Fee revealed the transfer throughout a coverage replace to the State Affairs Planning Committee.
The FSC plans to roll out its proposal within the second half of the yr. It would consider the implications of introducing crypto-based spot ETFs, together with potential dangers to monetary stability, investor publicity, and the broader financial system.
The company additionally intends to construct the required infrastructure for itemizing and managing such ETFs whereas making certain investor safeguards.
This coverage push aligns with marketing campaign pledges made by President Lee Jae-myung, who beforehand advocated for permitting the issuance and buying and selling of Bitcoin-based ETFs and comparable funding merchandise tied to digital belongings.
Stablecoin oversight and payment construction underneath evaluation
Past the ETF rollout, the FSC is advancing the second part of its digital asset laws.
This subsequent step will concentrate on laws for asset listings, disclosures, enterprise practices, and crackdowns on unfair market exercise.
A key a part of the hassle might be aligning stablecoin guidelines with worldwide requirements whereas defending customers and enhancing market transparency.
Notably, South Korean authorities are significantly involved concerning the rising affect of US dollar-denominated stablecoins within the home market. Lee Chang-yong, the governor of the Financial institution of Korea, just lately cautioned that won-pegged stablecoins might enhance demand for the US greenback, elevating macroeconomic dangers.
In the meantime, the FSC reportedly plans to launch a market-wide evaluation of transaction charges charged by native crypto exchanges.
The evaluation will initially goal South Korea’s largest exchanges, together with Upbit, Bithumb, and Coinone.
Key areas of curiosity embrace how these platforms’ charges are structured, whether or not they disclose this info transparently, and the extent of voluntary payment reductions.
South Korea’s newest regulatory steps replicate its intent to stability innovation with person safety because it reshapes its crypto market coverage
