A new regulatory body in South Korea is set to launch this month, focusing on issues such as approving Bitcoin and Ethereum spot ETFs. The Virtual Assets Committee will operate under the Financial Services Commission (FSC) and is expected to discuss allowing corporate virtual asset investment. This move comes as South Korean companies express interest in investing in Bitcoin, Ethereum, and other altcoins. The committee aims to finalize its membership before the end of October, with a kickoff meeting planned by the end of this month.
Despite industry pressure and lawmaker calls, the FSC has delayed discussions on Bitcoin ETF approval. However, the establishment of the Virtual Assets Committee indicates progress in the regulatory landscape for virtual assets in South Korea. The committee’s legal framework was set up under the Virtual Asset User Protection Act, providing a regulatory structure for overseeing virtual assets. The FSC has appointed its Vice Chair, Kim So-young, as the head of the new commission, with additional officials from various ministries and the private sector.
With the rise of Bitcoin ETFs in the US and other countries, there has been a push for regulatory clarity in South Korea to allow companies to buy and invest in cryptocurrencies. The new committee is expected to address these concerns and foster growth in the crypto sector while protecting investors. The responsibilities of the committee include decisions on corporate virtual asset accounts and discussions on second-stage crypto legislation. This regulatory development signifies a shift towards a more structured approach to virtual assets in South Korea.
Industry leaders and politicians in South Korea have been advocating for regulatory measures to enable domestic companies to compete globally in the crypto market. With the establishment of the Virtual Assets Committee, there is hope for a balanced approach that addresses investor protection and market growth. The committee’s formation aims to address the evolving needs of the crypto sector and promote a regulatory environment that fosters innovation while safeguarding investors’ interests.
Lawmakers have emphasized the importance of creating a conducive environment for domestic crypto exchanges to thrive in South Korea. There are concerns about potential monopolies and unequal treatment of exchange platforms, prompting calls for regulatory intervention. The Virtual Assets Committee is expected to address these issues comprehensively and ensure fair competition in the crypto market. Financial Services Commission Chairman Kim Byung-hwan has underlined the importance of striking a balance between investor protection and sector growth to establish a robust regulatory framework for virtual assets in South Korea.
