The best financial regulator in South Korea is working on a detailed route map to support the launch of digital assets-exchange funds.
According to a report of 19 June by Herald Economy, the Financial Services Commission unveiled the move during a policy update of the planning of state affairs planning.
The FSC intends to roll out its proposal in the second half of the year. It will evaluate the implications of the introduction of crypto-based spot ETFs, including potential risks for financial stability, exposure to investors and the broader economy.
The agency is also planning to build the necessary infrastructure for mentioning and managing such ETFs, while investors are guaranteed.
This Pushs policy corresponds to the campaign to-say by President Lee Jae-Myung, who previously argued for allowing the issue and trade of Bitcoin-based ETFs and similar investment products linked to digital assets.
Stablecoin Supervision and reimbursement structure in assessed
In addition to the ETF rollout, the FSC promotes the second phase of its legislation on digital assets.
This next step will focus on regulations for assets, announcements, disclosures, business practices and alignment about unfair market activity.
An important part of the effort will be to tailor the Stablecoin rules to international standards, while users are protected and the market transparency is improved.
The South Korean authorities in particular are particularly concerned about the growing influence of Stablecoins generated by the US dollar on the domestic market. Lee Chang-Yong, the Governor of the Bank of Korea, recently warned that Pegged Stablecoins could increase demand for the US dollar, increasing macro-economic risks.
In the meantime, the FSC is reportedly planning to launch a market-wide assessment of transaction costs charged by local crypto fairs.
The assessment will initially be aimed at the largest stock markets in South Korea, including Upbit, Bithumb and Coinone.
The most important areas are important, among other things, how the costs of these platforms are structured, whether they reveal this information transparently and the size of voluntary reimbursements.
The latest regulatory steps in South Korea reflect the intention of balancing innovation with user protection because it reforms its crypto market policy