- In the office, Yoon Seok Yeol commented on the SFC’s position on cryptocurrency ETFs.
- The South Korean regulator said it was impossible to launch such a product on the local market.
- Here they refuted this statement, noting that first they need to study the amendments to the legislation that will have to be adopted to launch such funds.
The South Korean Financial Services Commission (SFC) has not been directed to ban cryptocurrency ETFs. This is reported local media with reference to the head of the presidential administration for political affairs, Son Tae-yoon.
“We have made it clear to the Commission, the ministry responsible for this issue, not to say yes or no,” the official said.
Son Tae Yoon emphasized that it is too early to talk about the institutionalization of cryptoassets in general and Bitcoin in particular. However, the president’s office does not reject this possibility itself.
“It is necessary to adopt appropriate amendments to current legislation in order for this tool to work for us,” said Son Tae Yoon.
The SFC previously stated that cryptocurrency ETFs contravene South Korea's capital markets law. According to a department representative, it is legally impossible to launch such a tool in the country.
Meanwhile, IBK Investment & Securities noted high interest in cryptocurrency ETFs. They said that the launch of a new class of exchange-traded funds would help avoid volatility in the local market that would follow the tightening of taxation in 2025.