South Korea’s Democratic Party, which got 175 seats out of 300 in the latest general election, plan on implementing its campaign promise of making spot cryptocurrency funds available in the country.
The party intends to ask the Financial Services Commission (FSC), leading financial regulatory institution of South Korea, to reconsider Bitcoin spot ETFs. This step would be vital to the party’s goal of allowing the local issuance and trade of spot Bitcoin funds.
The Financial Services Commission (FSC) currently prohibits the issuance and trading of spot Bitcoin ETFs, as there are no laws that recognize Bitcoin and other cryptocurrencies as underlying assets. The Democratic Party is willing to change existing financial laws if the FSC continues to resist approving spot crypto funds.
Spot Bitcoin ETFs in South Korea
The 22nd National Assembly will begin in June, and the Democratic Party intends to implement a policy allowing local financial institutions to manage spot crypto ETFs. This will enable retail investors to access these funds without tax burdens.
The position of FSC on spot Bitcoin ETFs will be crucial to defining the regulatory scenario for financial products based on cryptocurrency in the country.
A Democrat representative pointed out that the regulatory framework should be reviewed in accordance with global tendencies. However, the FSC is cautious due to the lack of a clear legal base and the party’s firm intention to move forward with its agenda.
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