- During a meeting at the office, Yoon Seok Yeol shared his thoughts on the stance of the South Korean regulator, the Financial Services Commission (SFC), regarding cryptocurrency ETFs.
- According to the SFC, the local market is not ready for the launch of cryptocurrency ETFs, and they believe it is impossible to introduce such a product.
- However, there are dissenting opinions in the office, as some argue that a thorough study of the necessary amendments to the legislation is required before dismissing the possibility of launching these funds.
Contrary to previous reports, the Presidential Administration for Political Affairs clarifies that the SFC has not been instructed to ban crypto ETFs, as per statements from Son Tae-yoon, the head of the administration.
“We have advised the Commission, which is responsible for this matter, not to make a definitive decision,” stated the official.
While acknowledging the need for caution, Son Tae-yoon believes it is premature to discuss the institutionalization of cryptoassets, including Bitcoin. However, he does not rule out the possibility in the future.
“In order for this tool to be viable, appropriate amendments to the existing legislation must be adopted,” emphasized Son Tae-yoon.
Earlier, the SFC declared that cryptocurrency ETFs are not in compliance with South Korea’s capital markets law and cannot be introduced in the country.
However, IBK Investment & Securities expressed strong interest in cryptocurrency ETFs, citing their potential to mitigate market volatility in light of anticipated tax changes in 2025.