Democratic Party of Korea Pushes for Reconsideration of Spot Bitcoin ETFs

In
order
to
execute
the
promise
it
made
during
the
campaign
to
enable
spot
Bitcoin
exchange-traded
funds
(ETFs)
with
underlying
virtual
assets
in
the
nation,
the
Democratic
Party
of
Korea
is
now
pursuing
the
necessary
next
measures.
By
submitting
a
request
to
the
Financial
Services
Commission
(FSC),
the
party
intends
to
propose
that
the
FSC
rethink
its
assessment
of
the
legal
status
of
spot
Bitcoin
exchange-traded
funds.

The
Federal
Securities
Commission
(FSC)
has
previously
declared
that
domestic
securities
companies
may
be
in
violation
of
the
Capital
Markets
Act
if
they
list
international
spot
Bitcoin
exchange-traded
funds
(ETFs).

In





South
Korea,
those
who
advocate
for
spot
Bitcoin
exchange-traded
funds
(ETFs)
expressed
their
disapproval
and
worries
in
response
to
this
remark.

The
campaign
promise
made
by
the
Democratic
Party

One
of
the
most
important
promises
made
by
the
Democratic
Party
of
Korea
during
the
election
campaign
was
to
make
it
possible
for
spot
Bitcoin
funds
to
be
issued
and
traded
inside
the
nation.”

Spot
Bitcoin
exchange-traded
funds
would
make
it
possible
for
individual
investors
to
have
access
to
these
products
without
incurring
any
tax
obligations.

With
the
implementation
of
a
policy,
the
party
intends
to
make
it
possible
for
local
financial
institutions
to
handle
spot
crypto
exchange-traded
funds.

Reexamination
of
the
Existing
Legal
Status

There
is
a
plan
to
request
that
the
Federal
Securities
Commission
(FSC)
reconsider
its
assessment
of
the
legal
status
of
spot
Bitcoin
exchange-traded
funds
(ETFs).

The
party
is
of
the
opinion
that
the
regulatory
structure
need
to
be
in
accordance
with
the
global
trends
and
should
be
able
to
accommodate
the
ever-changing
landscape
of
cryptocurrencies.

The
Federal
Security
Council,
on
the
other
hand,
has
cautioned
against
moving
ahead
with
the
party’s
plan
owing
to
the
absence
of
a
clear
legal
base
and
the
party’s
unwavering
commitment
to
do
so.

The
Importance
of
the
Position
of
the
FSC

In
South
Korea,
the
regulatory
environment
for
financial
products
that
are
based
on
cryptocurrencies
will
be
shape
by
the
FSC’s
position
on
spot
Bitcoin
exchange-traded
funds
(ETFs),
which
will
play
a
major
role
in
moulding
the
landscape.

The
Democratic
Party
is
willing
to
investigate
the
possibility
of
modifying
the
existing
financial
legislation
in
the
event
that
the
FSC
continues
to
be
resistant
to
licencing
spot
crypto
funds.

Image
source:
Shutterstock

.
.
.

Tags