South Korea Faces Pressure to Approve Cryptocurrency ETFs Amid U.S. Regulatory Advances

Following the United States Securities and Exchange Commission's (SEC) approval of spot Ethereum ETFs on May 24, 2024, pressure mounts on South Korea's financial regulators to reconsider their cautious stance on cryptocurrency exchange-traded funds (ETFs). While the SEC has given the green light for Ethereum ETFs, following its earlier approval of Bitcoin ETFs in January 2024, South Korea's Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have been hesitant to allow crypto trading on traditional securities markets. However, voices within the industry, including digital currency data provider Xangle and Jung Eui-jung, the head of the Korean Stockholders' Alliance, advocate for revising regulations to accommodate the growing significance of digital assets. They argue that failure to do so may lead investors to shift their funds to U.S. markets, where regulatory progress is more evident, potentially leaving South Korea behind in the evolving landscape of crypto finance.