ETF

South Korean financial regulators may lift the ban on spot cryptocurrency ETFs

ChainCatcher news, according to The Block, the South Korean Financial Services Commission (FSC) recently stated that it will reassess the ban on spot cryptocurrency ETFs and institutional accounts trading on cryptocurrency exchanges. This news marks a significant shift in the regulator's attitude towards digital assets.It is reported that the newly established cryptocurrency committee of the FSC will review the current ban. Previously, South Korean lawmakers have been calling for a change, with both the ruling Democratic Party and the opposition promising to approve local spot Bitcoin ETFs during the elections earlier this year. Since 2018, institutional investors in South Korea have effectively been prohibited from opening trading accounts on cryptocurrency exchanges. This policy adjustment could open new avenues for institutional investors to participate in the cryptocurrency market.Meanwhile, FSC Chairman Kim Byung-hwan stated that an investigation into the monopoly structure of South Korean digital asset exchanges will be conducted. Data shows that among the five fully licensed exchanges in South Korea, Upbit processed over $1.17 billion in trading volume in the past 24 hours, accounting for over 61% of the market share. In March of this year, its monthly average market share once soared to 80%. Democratic Party lawmaker Lee Kang-il also expressed concerns about the financial relationship between Upbit and its partner bank K-bank. He pointed out that Upbit's deposits account for 20% of K-bank's total deposits, warning that if the partnership between the two is disrupted, it could trigger a risk of a bank run.
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