Bridging the Divide: South Korea Contemplates Spot Bitcoin ETFs Amid Regulatory Deliberations

South Korean financial authorities are engaged in discussions regarding the potential approval of spot bitcoin exchange-traded funds (ETFs) within the country, according to statements by Lee Bok-hyun, the governor of the Financial Supervisory Service. In a radio interview on Tuesday, Lee disclosed that while he holds a positive stance on virtual assets, differing opinions within regulatory bodies are being considered, and internal discussions are ongoing. The current unavailability of spot bitcoin ETFs for South Korean investors has prompted these deliberations. Earlier in January, the country's financial authorities announced their decision not to regulate bitcoin futures ETFs, stating that brokerage sales of spot bitcoin ETFs could potentially violate the Capital Markets Act due to uncertainties surrounding bitcoin's classification as an underlying asset. Lee anticipates public input on the matter following the regulation of virtual assets, slated for the second half of the year.