The Financial Services Commission (FSC) of South Korea has announced plans to implement cryptocurrency ETFs and develop a regulatory framework for stablecoins in the second half of the year.
Plan for ETF Implementation
The FSC intends to create infrastructure for spot cryptocurrency ETFs, taking into account the risks associated with the connection between financial markets and virtual assets, their impact on the real economy, and the potential benefits for investors.
Role of President Lee Jae-myung
President Lee Jae-myung promised during his election campaign to allow the issuance, listing, and trading of spot ETFs based on crypto assets like Bitcoin. The launch of spot Bitcoin ETFs in the US in January last year contributed to the cryptocurrency reaching record levels.
Development of Stablecoin Regulation
The FSC is continuing its second-stage legislative process aimed at harmonizing regulations for stablecoins. Plans include clarifying the legal framework regarding listing and disclosure obligations for virtual assets, business rules, and combating fraud.
Upcoming changes in South Korea's cryptocurrency landscape could significantly impact both financial markets and virtual asset operations, ensuring investor protection and simplifying transactions.
