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- 1 The relationship between South Korea and cryptocurrencies has been repulsive in the past.
- 2 SEC’s Gary Gensler and South Korean financial regulators are reportedly setting up a meeting to discuss cryptocurrencies and NFTs.
- 3 Etherium is expected to cross the $5k mark soon.
Korean regulators and U.S. Financial authorities are scheduled to have conversations about non-fungible tokens (NFTs) and Bitcoin exchange-traded funds (ETFs). In particular, the U.S. Securities and Exchange Commission (SEC) and South Korea’s Financial Supervisory Service (FSS) will be discussing the inclusion of Bitcoin ETFs and NFTs, as assets.
South Korea and Cryptos
The relationship between South Korea and cryptocurrencies has been strained for some time. While the SEC approved Bitcoin Spot ETFs on January 11th key financial regulators in South Korea affirmed their commitment to upholding rules that bar institutions from introducing cryptocurrency exchange traded funds.
This development stirred the market with a representative from the Financial Services Commission emphasizing that the approval of spot Bitcoin ETFs in the U.S. would not prompt a reconsideration or removal of the ban in Korea.
The rationale behind maintaining these restrictions includes safeguarding financial market stability and ensuring investor protection.
South Korea’s Capital Markets Act limits investment contract securities like ETFs to designated instruments. Since 2017 South Korea has forbidden institutions from investing in cryptocurrencies. Do not categorize them as financial assets. Presently NFTs are not classified as “assets” in South Korea.
What This Meeting Can Lead to
The meeting between Gensler and Governor Lee is expected to cover the approval of spot Bitcoin ETFs in South Korea. The country restricts local institutions from launching crypto-related products and bars companies from brokering overseas-based spot Bitcoin ETFs.
South Korea’s ruling and opposition political parties have both announced plans to pledge the launch of local spot Bitcoin ETFs ahead of the general election on April 10. It has raised anticipation among local investors.
Meanwhile, South Korea’s regulatory framework focused on protecting crypto investors is expected to take effect in July, with the second half centered on standardizing crypto token issuance and information disclosure currently under development.
Crypto enthusiasts are excited about the meeting and hope that it may lead to South Korea lifting the crypto ban. This Event may also lead to Ethereum reaching $5,000 as the crypto experts are predicting.
Ethereum is Expected to Reach $5000 Soon
The highest price ever reached by Ethereum was around $4,892, which occurred in November 2021. It resulted in the token’s price skyrocketing by 153,000% from its initial launch in mid-2015. Some individuals, who invested early, were fortunate enough to make a lot of money.
With the enhanced capabilities and flexibility of contracts, Ethereum aims to establish itself as the leading computing platform globally. This groundbreaking blockchain technology enables transactions between parties for purposes without relying on a middleman.
If its usage becomes widespread, industries that traditionally rely on intermediaries could face significant disruptions.
Ethereum shows potential because of its characteristics and the flexibility of contracts. Forbes predicts that Ethereum could be valued between $4,500 and $6,500 by 2025 with an estimated value of around $5,500. Looking forward to 2030 there is a chance that its value might increase significantly, potentially reaching a maximum of $20,500.
Summary
SEC approved Bitcoin Spot ETFs on January 11. South Korea restricts local institutions from launching crypto-related products, including exchange-traded funds. Gensler and Governor Lee may discuss the approval of spot Bitcoin ETFs in South Korea. Ethereum aims to be the leading computing platform and Forbes predicts its value could be between $4,500 and $6,500 by 2025.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or any other related indexes comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
