Spot Bitcoin ETFs Face Delay as South Korea Adjusts Crypto Regulations
South Korea has opted to “indefinitely postpone” the relaxation of crypto regulations and the consideration of spot bitcoin exchange-traded funds (ETFs), diverging from initial plans to ease restrictions.
This decision follows the People Power Party’s contemplation of regulatory adjustments and the ETF ban ahead of South Korea’s general election. Despite the U.S.’s recent broad approval of spot bitcoin ETFs, the Financial Services Commission (FSC) spokesperson confirmed the persistence of the prohibition. Chosun Biz, a South Korean news source, reported the delay, stating that the People Power Party stressed the necessity of “sufficient policy coordination” and prioritized addressing instances of fraud within the prudential theory framework.
With the focus on nominations and personnel selection, the possibility of announcing virtual asset pledges has dwindled. This regulatory update comes amid a surge in the crypto market’s value, with substantial volumes and inflows into spot bitcoin ETFs. Bitcoin’s price, nearing its all-time high at $69K, reached $64K, contributing to a notable premium in South Korea’s BTC prices, exceeding the global weighted average exchange rate by up to $2,500.
Clever Robot News Desk 2nd March 2024
