New York, Sunday, October 20, 2024 – South Korea is set to establish a new regulatory body, the Virtual Assets Committee, which could accelerate the approval process for Bitcoin and Ethereum spot ETFs.
The committee, operating under the Financial Services Commission (FSC), is expected to hold its first meeting by the end of October.
The committee’s primary focus will be to discuss Bitcoin and Ethereum ETF approvals, along with corporate investments in virtual assets.
Industry insiders have noted that South Korean companies are eager to invest in Bitcoin and Ethereum, following the footsteps of American and Japanese firms. Some companies are reportedly awaiting legal clarity on whether they can hold cryptocurrencies in their balance sheets.
Despite ongoing pressure from lawmakers and the crypto industry, the FSC has delayed any formal discussions on Bitcoin ETFs. However, the formation of the Virtual Assets Committee is expected to move these conversations forward. The committee’s legal foundation was established under the Virtual Asset User Protection Act, enacted in July 2024.
The committee will consist of 15 members, including regulatory officials from the Ministry of Economy and Finance, the Ministry of Justice, and the Ministry of Science. Nine additional members will be drawn from the private sector, contributing to a well-rounded regulatory perspective.
FSC Chairman Kim Byung-hwan recently addressed the National Assembly, emphasizing the need to balance investor protection with the promotion of the crypto sector’s growth. Kim acknowledged the importance of maintaining competitiveness as global markets continue to embrace Bitcoin ETFs.
The launch of this new regulatory body is seen as a crucial step in advancing South Korea’s position in the global cryptocurrency landscape.
