South Korea's Democratic Party Pushes for Review of Banned Bitcoin ETFs

South Korea's left-wing Democratic Party is planning to request a review of the currently banned spot bitcoin exchange-traded funds (ETFs) by financial regulators. This move is part of the party's initiative to make spot bitcoin funds accessible within the country. Following their victory in April's general election, where they won 175 out of 300 seats in the local legislative body, the Democratic Party aims to enable local financial institutions to launch spot crypto ETFs. They also plan to allow retail investors to purchase these funds through accounts with tax exemptions. Once the 22nd National Assembly commences in June, the party intends to request the Financial Services Commission (FSC), the country's top financial watchdog, to reexamine spot bitcoin ETFs in order to open up local access to these products. Currently, the FSC does not permit the issuance or trade of spot bitcoin ETFs, as it has determined that there is no legal basis for cryptocurrencies to serve as underlying assets for such products. If the FSC remains reluctant to approve bitcoin funds, the Democratic Party is considering the option to amend existing financial regulations. However, the party did not respond to requests for comment.

Sources :
- TheBlock