South Korean regulators are expected to delay approval for a domestic Bitcoin spot ETF until after the nation’s upcoming general elections, according to insiders. Anonymous financial industry sources anticipate that any new cryptocurrency regulations will now be postponed until after the legislative elections in April.
South Korea is scheduled to hold its elections on April 10, with the opposition Democratic Party currently holding a significant 55% majority in the National Assembly.
These officials anticipate a comprehensive revision of cryptocurrency laws to align with the promises made in President Yoon Seok-yeol’s election manifesto.
However, unlike their counterparts in Washington, Seoul-based regulators do not plan to rush into these changes. One expert stated:
“We anticipate that revisions to the laws and regulations governing virtual assets will only be considered once the general election concludes. In the meantime, regulators will closely monitor the market’s performance, especially with regards to the success of US Bitcoin spot ETFs.”
South Korean securities providers have received a cautionary note regarding the provision of Bitcoin ETF access to customers abroad. In response to this warning from the Financial Services Commission (FSC), two major brokerages temporarily halted their spot BTC ETF products towards the end of the previous week.
The FSC has indicated that it will “review” its position on this matter but has not yet provided further details or comments.
Furthermore, the regulator intends to establish formal regulations regarding the listing and delisting of tokens, a move prompted by a series of controversies. Both traders and lawmakers have voiced their criticism of exchanges for their handling of the delisting process of the LUNC (formerly LUNA) token following the Terra ecosystem crash in May 2022. Exchanges have also faced scrutiny from critics for their handling of the listing and delisting of the gaming-related coin WEMIX and the altcoin CTC.
South Korean ‘Crypto Revival’ Incoming?
Meanwhile, analysts anticipate bullish activity among South Korean cryptocurrency traders in response to the news of the US Bitcoin ETF.
News1 reported that experts are predicting a resurgence of interest in the domestic crypto market, which has been relatively stagnant for the past two years. One industry official highlighted:
“Despite its stringent regulations, the South Korean market benefits from a robust retail sector. When overseas markets show signs of revival, there is a strong tendency for domestic investors to follow suit.”
