The South Korean Financial Services Commission (FSC) today announced its potential review of approving Bitcoin spot ETFs and other digital assets.
Reviewing Bitcoin Spot ETFs
The FSC intends to evaluate the approval for Bitcoin spot ETFs. To conduct this review, a Virtual Asset Committee will be formed to provide policy consultation for the cryptocurrency and blockchain sector.
Goals and Composition of the Committee
The announcement was made during the FSC's national audit report. The committee will be led by the Vice Chairman of the FSC and include 9 members from government fields such as economy, finance, justice, science, and ICT, along with private sector experts.
Impact on the 'Kimchi Premium'
Crypto Quant CEO, Ki Young Ju, views this development as potentially lowering the 'Kimchi Premium'—the price gap between Korean and global Bitcoin exchanges. The premium currently stands at 1.51, a low figure compared to the 10% peak in March.
Approval of Bitcoin spot ETFs could significantly impact South Korea's regulatory landscape and market dynamics.