2024-01-17 18:00:00
Kim So-young, “It is difficult to introduce it under the current law,” leaving open the possibility of policy changes in the future.
The Financial Services Commission has repeatedly confirmed its policy that issuing and brokering Bitcoin spot exchange-traded funds (ETFs) is not possible in Korea. This is due to concerns that it may affect financial market stability and may violate the Capital Markets Act, considering the volatility of virtual assets.
On the 17th, Kim So-young, Vice Chairman of the Financial Services Commission, answered a question regarding the introduction of Bitcoin spot ETF at a pre-briefing held before the fourth public livelihood debate with the people, saying, “It is difficult under the current law.” The Financial Services Commission has maintained the view that Bitcoin ETF issuance and brokerage is impossible in Korea since the 11th (local time), when the Bitcoin spot ETF was approved and first traded in the United States. At the end of 2017, the government banned financial institutions from holding, purchasing, obtaining collateral, or investing in virtual currencies. This is due to concerns that it may encourage speculative sentiment. Even under the Capital Markets Act, brokerage of Bitcoin spot ETFs is impossible. To launch an ETF, an ‘underlying asset’ is required, but virtual assets such as Bitcoin have not yet been recognized as an underlying asset in Korea.
Vice Chairman Kim said, “In a situation where virtual assets are highly volatile, soundness may become an issue if a financial company owns virtual assets,” and added, “When trading Bitcoin spot ETFs, a problem arises with financial companies owning virtual assets.” “I do it,” he explained. However, he left open the possibility of future policy changes, saying, “We are not proceeding with a specific direction, and we will carefully review various situations in the future.”
Reporter Jeong Soon-gu soon9@donga.com
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