South Korean Bitcoin ETF Approval Delayed Until After Elections, Say Insiders
According to anonymous financial industry insiders, South Korean regulators are unlikely to approve a domestic Bitcoin spot ETF until after the nation’s general elections in April. These insiders believe that any new crypto regulations will have to wait until the end of the legislative elections, as the opposition Democratic Party currently holds a significant majority of National Assembly seats. President Yoon Seok-yeol’s election manifesto promises an “overhaul” of crypto laws, but regulators in Seoul will not follow the lead of their counterparts in Washington. Instead, they will monitor the success of US Bitcoin spot ETFs before making any revisions to virtual asset regulations.
South Korean Securities Providers Warned About Offering Bitcoin ETF Access
The Financial Services Commission (FSC) has cautioned South Korean securities providers about offering Bitcoin ETF access to overseas customers. In response to this warning, two major brokerages have put their spot BTC ETF products on hold. The FSC has promised to review its stance but has not provided further details. Additionally, the regulator is set to issue formal rules regarding the listing and delisting of tokens following controversies related to delisting failures in the wake of the Terra ecosystem crash and criticism of exchanges for their handling of gaming-related coin listings.
Analysts Predict Bullish Behavior in South Korean Crypto Market
Analysts are predicting bullish behavior from South Korean crypto traders following news about the US Bitcoin ETF. Experts quoted by News1 expect a “revival” in the stagnant retail crypto market in South Korea. Despite strict regulations, the market benefits from a strong retail sector, and when overseas markets improve, domestic investors tend to follow suit. This suggests that the South Korean market may experience increased activity and interest as a result of the US Bitcoin ETF news.
Hot Take: South Korea Delays Bitcoin ETF Approval, Waiting for US Success
The approval of a domestic Bitcoin spot ETF in South Korea is expected to be delayed until after the general elections in April. Regulators in Seoul are closely monitoring the success of US Bitcoin spot ETFs before making any revisions to virtual asset regulations. This cautious approach aligns with President Yoon Seok-yeol’s election manifesto promises of an “overhaul” of crypto laws. Meanwhile, South Korean securities providers have been warned against offering Bitcoin ETF access to overseas customers. The Financial Services Commission (FSC) is reviewing its stance and plans to issue formal rules regarding token listing and delisting. Despite strict regulations, analysts predict a bullish revival in the South Korean crypto market following the US Bitcoin ETF news.
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