Source: Cointelegraph
Original: “South Korean Presidential Candidates Support Legalization of Bitcoin (BTC) ETFs”
South Korea may soon follow Hong Kong in legalizing spot Bitcoin exchange-traded funds (ETFs), as the country's main presidential candidates have expressed support for cryptocurrencies.
Nevertheless, some industry observers remain cautious about the potential for recent regulatory policy changes.
"All three major presidential candidates in South Korea support #Bitcoin ETFs and institutional investment," said Ki Young Ju, founder and CEO of the on-chain data analysis platform CryptoQuant, in a post on the X platform on May 14.
It is noteworthy that current South Korean regulations prohibit Bitcoin ETFs and institutional cryptocurrency investments, resulting in "100% of trading volume coming from retail investors," Ju further explained.
According to the Korea Economic Daily (KED), on May 6, Lee Jae-myung, leader of the Democratic Party, pledged to legalize spot cryptocurrency ETFs, reduce trading fees, and "create a safe investment environment for young people to accumulate assets and plan for the future."
The Korea Economic Daily pointed out that the Democratic Party had made similar promises during the 2024 election campaign, including the legalization of spot cryptocurrency ETFs, but relevant progress has been delayed.
Although the friendly attitude of leading candidates towards cryptocurrencies seems to indicate a promising outlook for South Korea's digital asset legislation, regulatory experts remain cautious.
Anndy Lian, a blockchain intergovernmental advisor and writer, told Cointelegraph: "The candidates' commitment to supporting cryptocurrencies, including pushing for the legalization of spot Bitcoin (BTC) ETFs and reducing fees, suggests a potential policy shift. However, historical experience makes it difficult for us to be overly optimistic." He further noted:
"They will likely take a stance similar to that of Hong Kong. Whether ETFs can perform well will depend on various other factors."
Lian emphasized: "A pro-cryptocurrency president could drive change, aligning South Korea with global trends, such as in the U.S., where Bitcoin ETFs have attracted billions of dollars in net inflows," he added, noting that the tone of the Financial Services Commission also shows "regulatory openness" towards cryptocurrencies.
However, the People Power Party also promised to lift the ban on cryptocurrency ETFs and revise the controversial "one exchange corresponds to one bank" rule when elected in 2022, "but failed to take substantial action before President Yoon was impeached," Lian stated.
In Hong Kong, the first ETFs based on Bitcoin and Ethereum officially began trading on April 30, 2024, but their trading activity has been disappointing compared to similar products in the U.S., according to Cointelegraph.
Related: Minister states: Kazakhstan will become a "Central Asian crypto hub" through reforms.
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