In a bold move following their recent electoral victory, South Korea’s Democratic Party is taking significant steps toward fulfilling their campaign promise to enable the trading of spot bitcoin ETFs within the country. This initiative is part of a broader strategy to make cryptocurrency funds more accessible to local investors.
The Democratic Party, which secured a decisive majority with 175 out of 300 seats in April’s general election, has outlined plans to challenge current financial regulations that block the issuance and trading of such funds. Despite the Financial Services Commission (FSC)’s current stance that cryptocurrencies do not have a legal framework as underlying assets for ETFs, the party is not deterred.
A party insider revealed to BloomingBit news that upon the inauguration of the 22nd National Assembly in June, the party will formally request the FSC to reassess its policies on spot bitcoin ETFs. “We are committed to making these funds accessible, providing local investors with new opportunities and enhancing our financial market’s inclusivity,” said a spokesperson from the Democratic Party.
The Democratic Party’s victory in the elections not only reshaped the legislative landscape but also signaled a potential shift in the country’s financial policies. The party has pledged to advocate for the establishment of spot crypto ETFs that investors could purchase through tax-exempt accounts, suggesting a progressive approach to financial innovation.
Moreover, the party is prepared to propose amendments to the existing financial regulations should the FSC maintain its resistance to authorizing bitcoin funds. This indicates a proactive stance in adapting legal frameworks to keep pace with evolving financial technologies.
