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Experts Anticipate Delay in South Korea’s Bitcoin ETF Approval Until After Elections

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According to officials in South Korea’s financial investment industry, the country’s regulatory body – the Financial Services Commission (FSC) – will not be approving any domestic Bitcoin exchange-traded funds (ETFs) before the nation’s next general elections in April 2023. South Korea is a parliamentary republic where citizens vote to elect members of the National Assembly who then determine the policy agenda of the country. The current National Assembly is dominated by the opposition Democratic Party, which holds over half the seats. Experts predict the incoming administration, after the elections, may pursue an “overhaul” of cryptocurrency laws in line with President Yoon Seok-yeol’s campaign promises to foster innovation in emerging technologies.

Regulators cautious about following US approval

Experts Anticipate Delay

While US regulators approved the first Bitcoin futures ETF last month, experts do not expect South Korean financial authorities to hastily follow suit. One analyst noted that local securities firms have been advised against providing Bitcoin ETF access to overseas customers, indicating regulators’ cautious stance. Additionally, South Korea’s top financial regulator, the Financial Services Commission, recently warned major brokerages who then put planned spot Bitcoin ETF products on hold. The Commission has pledged to “review” its position but has yet to clarify further its regulatory approach.

Regulation changes and controversies

Experts also anticipate the Financial Services Commission will soon issue formal rules around the listing and de-listing procedures for cryptocurrency tokens. This comes after widespread criticism of some exchanges’ handling of de-listings in the aftermath of market crashes, such as those involving Terra’s Stable Coin TerraUSD and gaming-related coin WEMIX. While regulations remain strict, analysts forecast South Korea’s retail crypto sector, which saw a lull in activity recently, may experience a “revival” as enthusiasm from overseas markets spills over. However, significant changes to rules may only materialize after the upcoming shift in political leadership.

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Matthew Garcia is a crypto article writer with over 5 years of experience in the industry. He is passionate about writing about the latest news and trends in the cryptocurrency space, and he has a deep understanding of the technology behind blockchain. Matthew Garcia has written for a variety of publications, including CoinDesk, The Block, and CryptoSlate. He is also a regular contributor to the Ailtra.io blog, where he writes about the latest developments in the Ailtra ecosystem. Matthew Garcia is a skilled writer with a knack for explaining complex technical concepts in a clear and concise way. He is also a creative writer who is able to produce engaging and informative content. Matthew Garcia is always up-to-date on the latest news and trends in the crypto space, and he is always looking for new ways to share his knowledge with others.
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