New South Korean Regulator ‘Could Speed Up Bitcoin ETF Verdict’
Bitcoin ETF
South Korea
New body’s members will be selected mainly from the private sector
Last updated:
October 13, 2024 19:30 EDT
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Tim Alper
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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…
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Last updated:
October 13, 2024 19:30 EDT
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A new South Korean regulatory body is set to launch this month, with a ruling on
Bitcoin ETF
approval reportedly high on its agenda.
Per
News1
, the tentatively named Virtual Assets Committee could hold its first meeting “as early as this month.”
The new body will operate under the umbrella of the country’s top financial regulator, the Financial Services Commission (FSC).
Bitcoin ETF: On the Agenda?
The media outlet said that the body’s launch would help “discussions on issues such as approving Bitcoin and
Ethereum spot ETFs
“gain speed.”
Industry insiders were also quoted as stating the committee is also expected to discuss “allowing corporate virtual asset investment.”
Several South Korean companies are hopeful of following American and Japanese companies into the Bitcoin, Ethereum, and altcoin investment sectors.
A South Korean financial sector expert told
Cryptonews.com
earlier this year that “more than one major” domestic company wants to know if Seoul will let firms buy BTC with their balance sheets.
The same expert, who spoke on condition of anonymity, said some companies “may also look to invest in ETH” if they are given permission.
Despite industry pressure and pressure from lawmakers, however, the FSC has repeatedly delayed discussions over Bitcoin ETF approval.
The media outlets quoted anonymous crypto industry insiders as stating that the body is also set to talk about “second-stage” crypto legislation.
“Kickoff Meeting” Slated for This Month
The same insiders said that the financial authorities “plan to finalize” the committee’s membership before the end of October.
They also want to “hold a kickoff meeting” before the end of this month.
The committee’s legal framework was established under the terms of the Virtual Asset User Protection Act, which came into force in July.
The FSC has already appointed its own Vice Chair, Kim So-young, as the new commission’s head.
FSC Vice Chair Kim So-young speaking in 2023. (Source: JTBC/YouTube/Screenshot)
A further five regulatory or governmental officials will sit on the commission, which will consist of a total of 15 members.
These five officials will be drawn from the following ministries:
The Ministry of Economy and Finance
The Ministry of Justice
The Ministry of Science
The remaining nine members will be drawn from the “private sector,” the media outlet reported.
The FSC this month underlined its stance that no Bitcoin ETF decision would be made until the commission’s launch.
The top regulator’s most recent audit report also noted that the body would tackle the issue of “corporate virtual asset accounts.”
‘Let Companies Buy Crypto’
News1 noted that political and industry leaders have made “continuous calls for corrective action” as US-based firms launch Bitcoin ETFs and buy BTC.
Last week, the Financial Services Commission Chairman Kim Byung-hwan attended a National Assembly meeting. At the summit, Kim talked up the new Virtual Asset Committee.
However, lawmaker Lee Kang-il, of the main opposition Democratic Party said:
But Kim responded that regulators intend to “balance” the need to “protect” crypto investors and the desire to spark crypto sector growth.
Don’t Play Squid Game With Domestic Exchanges – Lawmaker
Lee, meanwhile, also hit out at the FSC, accusing it of “
playing
Squid Game
” with domestic
crypto exchanges
.
He said that regulators were allowing Upbit to create a monopoly and leaving its exchange rivals to “die off.”
Kim said he was “aware” of these accusations. He promised that the FSC would “look into the matter.”
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