South Korea might quickly observe Hong Kong in legalizing spot Bitcoin exchange-traded funds (ETFs), because the nation’s high presidential candidates specific pro-crypto positions.
Nevertheless, some trade observers stay cautious concerning the chance of near-term regulatory change.
“All three main South Korean presidential candidates assist #Bitcoin ETFs and institutional funding,” Ki Younger Ju, the founder and CEO of onchain knowledge platform CryptoQuant, wrote in a Could 14 X submit.
Presently, Bitcoin ETFs and institutional crypto investments are banned in South Korea, that means that “100% [of the] quantity comes from retail,” Ju added.
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On Could 6, South Korea’s Democratic Social gathering chief Lee Jae-myung promised to legalize spot crypto ETFs, decrease transaction charges and “create a secure funding setting in order that younger folks can [build] property and plan for the long run, in response to a report from The Korean Financial Each day (KED).
The Democratic Social gathering made related guarantees in its 2024 election marketing campaign, together with the legalization of spot crypto ETFs, however progress has been delayed, reported KED.
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Candidates again ETFs, however historical past casts doubt
Whereas the crypto-friendly views of the main candidates counsel a promising future for digital asset laws in South Korea, regulation specialists stay skeptical.
“The candidates’ pro-crypto pledges to push to legalize spot Bitcoin ETFs and cut back charges sign a possible shift. However historical past tempers optimism,” Anndy Lian, writer and intergovernmental blockchain adviser, instructed Cointelegraph, including:
“They may tackle related stances as Hong Kong. Whether or not the ETFs can carry out or not will depend on numerous different components.”
“A professional-crypto president might drive reform, aligning South Korea with world tendencies just like the US, the place Bitcoin ETFs have attracted over billions in internet inflows,” Lian stated, including that the Monetary Companies Fee’s tone additionally recommended “regulatory openness” for cryptocurrencies.
Nevertheless, the Folks Energy Social gathering, elected in 2022, additionally promised to elevate the crypto ETF ban and revise the controversial one-exchange-one-bank rule, “however didn’t act earlier than President Yoon’s impeachment,” Lian stated.
Over in Hong Kong, the primary batch of Bitcoin and Ether-based ETFs launched for buying and selling on April 30, 2024, however noticed disappointing buying and selling exercise in comparison with their US counterparts, Cointelegraph reported.
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