South Korean Crypto Regulator to Begin Bitcoin Spot ETF Debate This Week

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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Last updated:

November 3, 2024 22:00 EST

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The new South Korean crypto regulator will begin discussions on possible Bitcoin Spot ETF approval this week.

Per News1, the Virtual Assets Committee will convene for the first time on November 6, with crypto ETFs high on the agenda.

The body, which answers to the Financial Services Commission (FSC), will also debate allowing South Korean firms to use their balance sheets to buy BTC, Ethereum (ETH), and other tokens.

The body will also discuss new stablecoin regulations as Seoul looks for new ways to police the industry.

However, in a blow to the crypto sector, the new regulator will not comprise any industry professionals.

The FSC has reportedly “excluded” crypto company executives due to “possible conflicts of interest.”

Instead, the FSC will draw its nine “civilian” members from leading think tanks and universities.

The media outlet explained that “no one from the virtual asset industry has been included in the civilian committee.”

This means that none of the five crypto exchanges in the Digital Asset Exchange Association (DAXA) will take a seat on the committee.

FSC Turns to Think Tanks

The FSC appears to have told media outlets that it has instead recruited people who have “conducted research on virtual assets” at think tanks like the Capital Market Research Institute and the Financial Research Institute.

“We have made it a rule to exclude the industry from the new committee. We have tried to form a committee of experts.”

FSC Chairman Kim Byung-hwan

The body’s meeting means that the debate on Bitcoin spot ETFs is finally “expected to gain speed.”

The FSC has repeatedly delayed deliberation on crypto ETFs this year, despite multiple approvals in the US and elsewhere.

The body had been slated to meet for the first time in September. However, the FSC postponed the launch “due to delays in the selection” of the civilian members.

Stablecoin Regulations on the Way?

FSC Chairman Kim Byung-hwan confirmed the body would tackle “issues” such as the approval or otherwise of corporate crypto accounts.” He said it would also create a new “stablecoin regulatory system.”

Kim conceded that the issue of whether South Korean firms can hold crypto was “being talked about a lot nowadays.”

South Korean business owners have told Cryptonews.com that they believe they should be free to invest in crypto using their balance sheets “if [they] want to.”

Others claim South Korea risks being “left behind” as rival firms in the United States and Japan step up their own BTC, ETH, and altcoin investment programs.