South Korea is on the verge of making a huge decision regarding Bitcoin ETFs. The country’s Financial Supervisory Service has been closely monitoring digital asset legislation trends in neighboring country, Japan, sharing insights with relevant local agencies. While Japan has traditionally approached cryptocurrencies with caution, it is now considering classifying them as financial products, which could lead to lifting the current ban on crypto ETFs.
South Korea’s Take on Bitcoin ETF
According to local media reports, Kim So-young, the Vice Chairman of South Korea’s Financial Services Commission, stated that spot Bitcoin ETFs would undergo “careful review.” This comes as South Korea experiences significant interest in crypto investments, with over 30% of its citizens actively involved in crypto assets. Despite political instability, the government is pushing forward with crypto regulations, which include allowing charities and universities to accept cryptocurrency donations starting in the second half of 2025.
Nikkei reported on February 10 that Japan’s Financial Services Agency is deliberating on how to position cryptocurrencies within its financial system, potentially removing the ban on crypto ETFs. However, these discussions are expected to extend into 2025, with a legislative proposal likely to be introduced to the National Assembly by 2026.
Kim So-young commented during a press conference following a virtual asset committee meeting that the review of spot Bitcoin ETFs in South Korea will be approached with caution. She pointed out that other countries, such as the UK and Japan, have yet to implement such measures, signaling that South Korea will carefully monitor global trends before making a decision.
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