South Korea Exchange Chairman Jung Eun-bo believes South Korea should introduce crypto exchange traded funds to remain relevant in the global digital financial landscape.
In a recent interview with the local South Korean media on February 9, 2025, Jung pointed out that global digital markets have already embraced ETFs. If active measures are not taken, South Korea could be trailing behind markets that already have an advantage on them.
Jung said, “South Korea is the world’s third-largest physical cryptocurrency trader. Cryptocurrency is an area that can create new value in the financial industry. In the U, forward and spot ETFs are listed and actively traded. We need to unwind crypto ETF trading before it’s too late.”
The chairman of the KRX has called for the introduction of crypto ETFs in South Korea to ensure the country remains competitive.#SouthKorea #ETFshttps://t.co/3gY7UflL4r
— Cryptonews.com (@cryptonews) February 10, 2025
As an example, he pointed out the availability and the active trading of Bitcoin Spot and Future ETFs in the United States. As per the Jung, approving crypto ETFs could breathe in a fresh lease of life for the country’s financial sector.
Currently the U.S. market features 20 cryptocurrency exchange-traded products, including both spot and futures-based options. These include 12 spot Bitcoin ETFs, 8 Bitcoin strategy ETFs, and 9 spot Ethereum ETFs.
The ETF landscape is expanding still to include other digital assets as well. Asset Managers have filed ETF applications to include cryptocurrencies like Solana and XRP. They are also considering meme coins like Dogecoin for an ETF.
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South Korea is Caught in a Financial Quagmire
The financial sector in South Korea is facing many challenges. The investor base in the country is shrinking at an alarming rate. Jung also mentions zombie companies – struggling companies, functioning on borrowed funds. The country recently saw a mass exodus of investors from its stock market as President Yoon Suk-yeol attempted to declare martial law.
Jung mentions that in the past Korea had a “fastest follower” strategy. However, in recent times, the country has lagged behind in key areas like AI. Investors in the country are no longer sure about the profitability of established companies like Samsung in the next 10-20 years.
As per Jung, embracing cryptocurrency ETFs could stimulate the crypto market in South Korea. It could provide investors in the country with easy access to safe and well-regulated digital assets. This will allow for the modernization of the financial landscape in the country, he thinks.
Jung also shared that regulations must be reasonable. He believes that excessive legislations stifle up innovations. To that end, end, Jung also wants restrictions to be eased on pension fund investment in equities. He maintains excessive limits and regulation on high-risk assets could hurt long term investments.
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Industry Leaders and Investors Align to Push Crypto ETFs
There are others who resonate with Jung’s reasoning. Korea Financial Investment Association Chairman, Seo Yoo-seok pushed to launch Bitcoin and Ethereum ETFs in the country during a press conference on February 5,2025.
Seo stated, “Everyone thinks of virtual assets as an investment target for the MZ generation (Millennials + Generation Z), but people in their 50s and 60s also have a lot of interest in and demand for virtual assets,”
He also cited developments in the United States. With President Trumps crypto push and his favorable stance on Bitcoin as a strategic reserve. Seo suggests South Korea to reconsider their stance on cryptocurrency ETFs so as to stay globally competitive.
This comes in as South Korean exchange market is undergoing contraction. Only 31 crypto exchanges remain operational in South Korea, from the earlier 42 in 2024. GDAC, ProBit, Huobi Korea and Bitrade are amongst the ones that have closed their operations.
These exchanges operated primarily as token-only platforms and suffered capital erosion, ultimately leading to their closure. Recently, Upbit came under regulatory scrutiny for violating 700,000 KYC and AML obligations and is now facing suspension.
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The post South Korea In A Sink Or Swim Situation, Must Approve Crypto ETFs Or Fall Behind appeared first on 99Bitcoins.
