Jung Eun-bo, the chairman of the Korea Exchange, asserts that South Korea needs to introduce cryptocurrency exchange-traded funds (ETFs) to remain competitive in global finance.
Jung Eun-bo's Statement
Jung pointed out that South Korea is the third-largest real cryptocurrency trading market but warned that delaying ETF approval could hinder the country's progress as other markets advance. Unlike South Korea, the United States has active trading of futures and spot Bitcoin ETFs. Jung emphasized that introducing crypto ETFs in South Korea could create new opportunities for the financial sector and align it with global trends.
Challenges in South Korea's Financial Sector
Jung's comments come at a crucial time as South Korea’s financial sector faces increasing challenges. These include a decreasing investor base and the rise of 'zombie companies' that rely on borrowed funds. In light of these issues, there is an emphasis on adopting innovative financial products, particularly cryptocurrency exchange-traded funds (ETFs). Jung sees this step as crucial for modernizing the country's financial sector and keeping pace with global trends.
Rationalizing Crypto ETFs
The chairman advocates for the adoption of cryptocurrency ETFs as a means to enhance market stability and provide a regulated option for investors in South Korea. He warns against excessive regulation, which could hinder innovation, and calls for more flexible rules regarding equity pension fund investments to promote long-term returns and market growth. Meanwhile, the South Korea crypto exchange market faces significant challenges, with a 26% decline in registered virtual asset service providers.
Jung Eun-bo's position underscores the urgency of timely implementation of crypto ETFs in South Korea to strengthen and modernize the financial sector amidst global competition.
