Korean Media: Approval of Spot Cryptocurrency ETFs in South Korea Unlikely This Year Due to Slow Legislative Progress

According to TechFlow, on December 8, Korean media outlet Naver reported that hopes for the approval of spot cryptocurrency ETFs in South Korea within this year are slim, with relevant legislative progress seriously lagging behind.

Currently, there are four related amendment bills pending review in the Korean National Assembly. These include amendments to the Capital Markets Act and the establishment of the Digital Asset Market Industry Act proposed by lawmakers from the ruling Democratic Party, as well as an amendment to the Capital Markets Act proposed by lawmakers from the opposition People Power Party. The core contents of the amendments include incorporating crypto assets into the scope of ETF underlying assets, allowing trust companies to custody crypto assets, and providing a legal basis for the crypto asset derivatives market.

However, due to the organizational restructuring of financial regulatory agencies and the allocation of policy resources to government stock market activation policies, the institutionalization of crypto assets has been pushed to a secondary position. Financial authorities are currently prioritizing the advancement of the Basic Law on Digital Assets, and discussions on the institutionalization of ETFs and derivatives are expected to be delayed.