The progress of the US Ethereum spot ETF is putting pressure on South Korean regulators

ChainCatcher news, according to Cointelegraph, after the recent approval of the spot Ethereum ETF Form 19B-4 by the US SEC, South Korean regulators are facing increasing pressure to approve cryptocurrency ETFs.

According to local media reports, the US SEC's decision regarding Ethereum is expected to put pressure on South Korean financial regulators, forcing them to reconsider their stance on digital assets.

Unlike the United States, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) in South Korea have taken a cautious approach to introducing cryptocurrency trading in the traditional securities market.

According to FSC regulations, ETFs must strictly comply with the Capital Markets Act, which stipulates that ETFs must only be linked to traditional underlying assets. These assets include mature financial instruments, securities, international currencies, and commodities, which provide the basis for financial derivatives.

According to Korea Times, Seoul-based digital currency data provider Xangle publicly opposes the ban on digital assets in the traditional securities market, stating that it is "outdated" and needs to be revised to accommodate the increasingly important role of digital assets in modern finance.

Jung Eui-jung, head of the Korean Stockholders' Alliance, also emphasized the importance of Seoul following the US and approving Bitcoin and Ethereum ETFs. Jung warned that if South Korean regulators continue to make no progress while the US makes advancements, investors may shift their funds to the US market, stating that "it will only be a matter of time before the US fully opens the door to other smaller-volume cryptocurrencies."