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South Korean financial regulators are currently discussing the possibility of allowing spot Bitcoin exchange-traded funds (ETFs) in the country. Lee Bok-hyun, the governor of the Financial Supervisory Service (FSS), shared insights on the ongoing conversations within South Korea’s regulatory authorities.
In a recent radio interview, Lee mentioned the deliberation on approving Bitcoin Spot ETFs, noting the varying opinions among regulatory bodies. While some officials are more cautious, Lee expressed optimism towards virtual assets.
The discussions around Bitcoin Spot ETFs approval in South Korea coincide with the country’s focus on technological innovation. However, the decision-making process faces challenges due to differing views within the regulatory community and concerns about Bitcoin’s classification under current financial laws.
Previously, in January, financial authorities indicated a lack of interest in regulating Bitcoin ETFs. However, the issue of brokerage sales of these ETFs under the Capital Markets Act has sparked further scrutiny.
Lee anticipates engaging the public on this matter, especially with expected regulatory developments concerning virtual assets later this year.
The Global Perspective on Bitcoin ETFs
The Financial Supervisory Service’s engagements extend beyond domestic dialogues. A formal consultation with the United States Securities and Exchange Commission (SEC) is scheduled for May. This discussion will focus on advanced financial instruments, including non-fungible tokens (NFTs) and the classification of Bitcoin Spot ETFs as virtual assets within regulatory frameworks.
Globally, interest in Bitcoin ETFs has surged, particularly after the U.S. SEC approved the first spot Bitcoin ETFs on Jan. 10. This decision led to a substantial increase in investments, with recent data showing a surge in U.S. Spot Bitcoin ETF inflows. Major financial institutions like Fidelity and BlackRock reported significant inflows, while the Grayscale Bitcoin Trust experienced outflows.
Regulatory Scrutiny of Digital Platforms
Meanwhile, South Korean regulators are intensifying their scrutiny of digital platforms due to privacy concerns. The Personal Information Protection Commission announced an investigation into Worldcoin (WLD) following reports of potential illicit processing of personal information without consent.
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