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- 1 While the US SEC approved the spot BTC ETF, South Korea is yet to do so.
- 2 Concerns of immense volatility and illegal activities in the crypto sector are holding back the SEC’s South Korean counterpart taking a similar decision.
- 3 Earlier in the first week of 2024, The South Korean Financial Service Commission (FSC) made major changes to the credit card rules.
Crypto moguls and several nations appreciated the decision of the Securities and Exchange Commission (SEC). South Korea still stands on its call to support the rules that restrict the launch of spot ETFs (Exchange Traded Funds).
While talking to a local media outlet, a spokesperson of, Financial Service Commission (FSC) South Korea, said that the acceptance of spot bitcoin ETFs in the United States would encourage the Korean regulator to lift the restriction or reconsider its policies over crypto.
The South Korean regulator’s primary concern is the extreme volatility and lack of user protection assurance. The surge in the number of illegal activities such as money laundering, smuggling, and fraud in the crypto industry is another serious concern.
Recent Amendment of South Korean Financial Regulators
In the first week of 2024, the South Korean Financial Service Commission (FSC) made major changes in the rules governing the usage of credit cards. The commission’s new rule prohibits citizens from buying cryptocurrencies using their credit cards.
The amendment shows FSC’s concern over financial crimes associated with crypto purchased for foreign exchanges. Yonhap reported that the proposed bill seeks public feedback until February 13, 2024. Following the process, it will be reviewed, amended, and then implemented.
However, the crypto industry is evolving steadily. Dozens of countries are actively working to form a transparent set of rules for the industry and many small nations topped the crypto adoption list of 2023.
The National Assembly of South Korea enacted new laws in March 2020, opening the door for regulating and legalizing the presence of cryptocurrencies and cryptocurrency exchanges.
Importance of US Approval of Spot ETFs
The SEC of the US has been aggressive towards digital assets hitherto. Its decision on spot ETFs approval has stirred the entire market, creating a conversational cloud for Ether spot ETFs.
In the past few hours, the Bitcoin price has picked up pace. At the time of writing, it was trading at $46,595.85, with a 2.03% surge. It is no surprise that Ethereum’s price chart reflected a similar uptick in movement as the ETH spot ETF is now more likely to be approved. ETH surged 8.77% since the approval was made public.
Per some ETF specialists, following the approval of the BTC spot ETF, the chances of an ETH ETF by a company that holds a significant amount of ETH is much higher.
Beacon Deposit Contract reportedly holds approximately 27-28% of the total circulating supply of Ethereum. notably, some centralized crypto exchanges also hold an appreciable amount of Ether.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
