South Korea could soon follow Hong Kong within the legalization of Spot Bitcoin Exchange Fund (ETFs), as the most effective presidential candidates within the country have expressed pro-crypto positions.
Nevertheless, some industry observers are careful concerning the probability of a brief -term regulatory change.
“All three major South Korean presidential candidates support #bitcoin ETFs and institutional investments,” wrote Ki Young Ju, the founder and CEO of the Onchain Data Platform Cryptoquant, in a post dated May 14.
Currently, Bitcoin ETFs and institutional cryptoin investments are prohibited in South Korea, which suggests that “100% [of the] The volume comes from the retail trade, ”added Ju.
From left: Democratic Party of the Korean presidential candidate Lee Jae-Myung, the presidential candidate of the People Power Party Kim Moon-Soo and the presidential candidate of the brand new reform party Lee Jun-Seok. Source: Ki Young Ju
On May sixth, South Korean Democratic Party leaders Lee Jae-Myung, Spot Crypto ETFs, promised to legalize lower transaction fees and “create a secure investment environment in order that young people can do that [build] Funds and plan for the longer term in line with a report by the Korean Economic Daily (KED).
The Democratic Party made similar guarantees in its 2024 election campaign, including the legalization of Spot -Krypto -ETFS, but progress has been delayed, reported KED.
Candidates Back ETFs, but history thrives on doubts
While the crypto -friendly perspectives of the leading candidates indicate a promising future for digital asset laws in South Korea, regulatory experts remain skeptical.
“The candidates' pro-crypto guarantees promise to legalize the legalization of spot bitcoin ETFs and reduce fees.
“You will take over similar points of view to Hong Kong. Whether the ETFs can run or not relies on various other aspects.”
“A professional crypto president could advance the reform and align South Korea with global trends similar to the United States, by which Bitcoin ETFs attracted over billions of net inflows,” said Lian, adding that the tone of the Financial Services Commission also suggested “regulatory openness” for cryptocurrencies.
However, the People Power Party, elected in 2022, also promised to boost the crypto ETF ban and revise the controversy one-exchange one bank rule, “but it surely couldn’t act before President Yoon's survey,” said Lian.
In Hong Kong, the primary batch of Bitcoin and ether-based ETFs was launched on April 30, 2024, but saw disappointing trading activities in comparison with their American colleagues, reported CoinTelegraph.
