The Office of the President of the Republic of Korea has urged the financial regulator, the Financial Services Commission (FSC), to reevaluate its position on spot crypto exchange traded funds (ETFs), local media outlet Maekyung reported on January 19.
The President’s Office encouraged the financial regulator to adopt a flexible approach to these financial products rather than taking a rigid ‘yes’ or ‘no’ position.
Tae-yoon Sung, the head of the presidential policy office, reportedly said the legal system was assessing whether foreign products were suitable for the Asian country or whether foreign ETFs could be made tradable domestically.
“We are further exploring how to prevent this from becoming a side effect or risk factor for other financial products or the real economy, while still having another investment element,” Sung added.
The statement from the President’s Office follows a recent warning from the FSC against domestic securities firms brokering foreign ETFs.
On January 12, the regulatory body highlighted possible violations of local laws by domestic companies offering foreign spot Bitcoin ETFs, forcing these companies to suspend their services for foreign-listed ETFs. However, Maekyung has reported that the President’s Office may want to reconsider these decisions.
Asian countries are divided over their attitudes towards crypto ETFs
South Korean authorities’ differing views on these ETFs reflect Asia’s prevailing view on such products.
The Singapore Monetary Authority (MAS) emphasized that spot Bitcoin ETFs do not have approval because crypto trading is inherently volatile, speculative and unstable, especially for retail investors.
Similarly, Thailand’s Securities and Exchange Commission claimed that it has no immediate plans to support ETFs as these products are just emerging in foreign markets. As such, it is too early to judge whether they have optimal economic value for Thai investors.
“The development of spot bitcoin ETFs in the foreign market is still in the early stages and such ETFs may not provide direct economic value suitable for Thailand’s current context,” Thailand SEC said.
However, financial regulators in Hong Kong have indicated they are open to considering spot Bitcoin ETF applications.
Recent reports indicate the possibility of a spot ETF debuting in town before the end of the first quarter. Hong Kong Venture Smart Financial Holdings Limited is reportedly preparing to submit the necessary application for this ETF.
South Korea’s Post-Presidential Office Points to Domestic Spot Bitcoin ETF Amid Regional Uncertainty appeared first on CryptoSlate.