Related articles
South Korea may quickly comply with Hong Kong in legalizing spot Bitcoin exchange-traded funds (ETFs), because the nation’s high presidential candidates have expressed pro-crypto positions.
Nonetheless, some trade observers stay cautious in regards to the chance of near-term regulatory change.
“All three main South Korean presidential candidates help #Bitcoin ETFs and institutional funding,” Ki Younger Ju, the founder and CEO of onchain knowledge platform CryptoQuant, wrote in a Might 14 X put up.
Presently, Bitcoin ETFs and institutional crypto investments are banned in South Korea, that means that “100% [of the] quantity comes from retail,” Ju added.
Associated: Bitcoin more of a ‘diversifier’ than safe-haven asset: Report
On Might 6, South Korea’s Democratic Get together chief Lee Jae-myung promised to legalize spot crypto ETFs, decrease transaction charges and “create a secure funding surroundings in order that younger individuals can [build] property and plan for the longer term, according to a report from The Korean Financial Every day (KED).
The Democratic Get together made comparable guarantees in its 2024 election marketing campaign, together with the legalization of spot crypto ETFs, however progress has been delayed, KED reported.
Associated: SEC delays Solana ETF as decisions for Polkadot, XRP loom
Candidates again ETFs, however historical past casts doubt
Whereas the crypto-friendly views of the main candidates counsel a promising future for digital asset laws in South Korea, regulation specialists stay skeptical.
“The candidates’ pro-crypto pledges to push to legalize spot Bitcoin ETFs and cut back charges sign a possible shift. However historical past tempers optimism,” Anndy Lian, writer and intergovernmental blockchain adviser, instructed Cointelegraph, including:
“They may tackle comparable stances as Hong Kong. Whether or not the ETFs can carry out or not is dependent upon varied different elements.”
“A professional-crypto president may drive reform, aligning South Korea with world tendencies just like the US, the place Bitcoin ETFs have attracted over billions in web inflows,” Lian mentioned, including that the Monetary Companies Fee’s tone additionally advised “regulatory openness” for cryptocurrencies.
Nonetheless, the Individuals Energy Get together, elected in 2022, additionally promised to elevate the crypto ETF ban and revise the controversial one-exchange-one-bank rule, “however didn’t act earlier than President Yoon’s impeachment,” Lian mentioned.
Over in Hong Kong, the primary batch of Bitcoin and Ether-based ETFs launched for buying and selling on April 30, 2024, however noticed disappointing trading activity in comparison with their US counterparts, Cointelegraph reported.
Journal: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest, April 13 – 19
