In pursuit of fulfilling their campaign promise to enable spot Bitcoin exchange-traded funds (ETFs) in South Korea, the Democratic Party is taking proactive steps by requesting the Financial Services Commission (FSC) to reconsider its stance on the legal status of these funds. This move comes after the FSC previously expressed concerns about domestic securities companies potentially violating the Capital Markets Act by listing international spot Bitcoin ETFs.
The Democratic Party’s campaign pledge highlighted the importance of allowing spot Bitcoin funds to be issued and traded within the country, aiming to provide individual investors with access to these products without tax obligations. To achieve this goal, the party aims to enable local financial institutions to handle spot crypto ETFs.
By urging the FSC to reexamine its assessment of the legal status of spot Bitcoin ETFs, the Democratic Party emphasizes the need for regulatory structures to align with global trends and adapt to the evolving cryptocurrency landscape. However, the FSC has expressed caution about proceeding with the party’s plan due to the lack of a clear legal basis and the party’s unwavering commitment to its implementation.
The FSC’s position on spot Bitcoin ETFs will significantly influence the regulatory environment for cryptocurrency-based financial products in South Korea. Consequently, the Democratic Party remains open to exploring modifications to existing financial legislation if the FSC continues to resist licensing spot crypto funds.
