KOFIA Chairman Calls for Bitcoin and Ethereum ETFs in South Korea
The chairman of the Korea Financial Investment Association (KOFIA), Seo Yoo-seok, has advocated for the introduction of Bitcoin and Ethereum exchange-traded funds (ETFs) in South Korea this year. He emphasized the importance of regulated investment products to provide safer access to digital assets.
- Seo highlighted significant interest in digital assets among individuals over 50, who possess substantial capital.
- He suggested that regulated ETFs would allow older investors to participate without directly entering the market.
- The chairman referenced favorable developments in the U.S. regarding virtual assets, which could influence South Korea's approach to crypto ETFs.
- Current regulations prevent the approval of digital asset-linked ETFs due to classifications under the Capital Markets Act.
- The Financial Services Commission (FSC) plans to ease restrictions on institutional participation in digital asset trading.
- South Korea is a leading player in the crypto sector, with its currency surpassing the US dollar in early 2024 for crypto trading.
- Anti-Money Laundering requirements have limited exchanges' operational capabilities, emphasizing reliance on individual investors.