South Korea has delayed its efforts to relax its crypto regulations and the prohibition on spot bitcoin exchange-traded funds (ETFs). This development follows closely behind the People Power Party’s contemplation of removing certain regulations and the ETF ban before the commencement of South Korea’s general election.
Report: Election Concerns Halt South Korea’s Crypto and ETF Regulation Ease
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South Korea Holds Back on Crypto Regulation and Reported ETF Relaxation Plans
Regulatory officials in South Korea have opted to “indefinitely postpone” the easing of crypto regulations and the consideration of spot bitcoin ETFs. Following the U.S.’s broad approval of several spot bitcoin ETFs, a spokesperson from the Financial Services Commission (FSC) announced to the media that the prohibition would persist. Subsequently, the National Assembly’s Political Affairs Committee intended to soften regulations and potentially revoke the ban on ETFs before the April elections.
The update on the delay was covered by Chosun Biz, a South Korean news source, which conveyed that the People Power Party maintained “sufficient policy coordination is necessary” initially. The policymakers emphasized that confirming instances of fraud within the framework of prudential theory also plays a significant role. “Instead of announcing additional pledges, the leadership is focusing on nominations for constituencies and selecting personnel for the People’s Future, a proportional satellite party,” an official familiar with the matter told Chosun Biz.
The official added:
As expected, the possibility of announcing virtual asset pledges in the remaining period has almost disappeared.
The announcement from the regulators arrives amidst a significant increase in the crypto market’s value, alongside substantial volumes and inflows into spot bitcoin ETFs. BTC’s price has approached its all-time high of $69K, hitting $64K, with a considerable portion of spot crypto trading volume originating from South Korea. BTC prices have seen a notable premium in the country, reaching up to $2,500 above the global weighted average exchange rate.
What do you think about the South Korean official telling local media that the easing of crypto regulations has been postponed? Share your thoughts and opinions about this subject in the comments section below.
