- Democratic Party’s push to review Bitcoin ETF ban signals regulatory shift in South Korea.
- With 175 seats secured, the party gears up for crypto-friendly policy changes.
- FSC’s ban on Bitcoin ETFs faces scrutiny amidst the party’s pledge for accessibility.
A major change in cryptocurrency legislation is being signaled by the Democratic Party of South Korea‘s preparation to contest the prohibition on spot bitcoin exchange-traded funds (ETFs). With 175 seats out of 300 in the April general election, the party won by landslide, and it is now in a position to promote spot bitcoin funds’ local accessibility.
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The party’s plan involves requesting financial regulators to reconsider the prohibition on spot bitcoin ETFs, a move aimed at broadening access to these investment products within South Korea. This initiative aligns with the Democratic Party’s election promise to facilitate the launch of spot crypto ETFs by local financial institutions, allowing retail investors to purchase these funds with tax exemptions.
Once the 22nd National Assembly convenes in June, the Democratic Party intends to formally approach the Financial Services Commission (FSC), the country’s top financial watchdog, to reevaluate the ban on spot bitcoin ETFs.
Considering cryptocurrencies cannot be used as the underlying assets for such products, the FSC currently forbids the creation or trading of spot bitcoin ETFs. The Democratic Party is still looking for ways to get over this regulatory roadblock.
The party is thinking about changing current financial laws in the case that the FSC continues to be reluctant to authorize bitcoin funds. The Democratic Party’s request that spot bitcoin ETFs be reviewed is indicative of a larger tendency in South Korean attitudes toward cryptocurrency regulation.
Growing motivation is being directed toward creating a more favorable climate for cryptocurrency investment and innovation with the party’s improved position in the National Assembly.
Finally, the Democratic Party’s effort emphasizes the need for proactive policymaking to accommodate the changing landscape of digital assets as South Korea deals with the challenges of regulating cryptocurrencies. With stakeholders eagerly observing events, the result of this regulatory inquiry may have a big impact on how South Korea invests in cryptocurrencies going forward.
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