Democratic Party of Korea Pushes for Reconsideration of Spot Bitcoin ETFs
Luisa Crawford May 08, 2024 11:46
The Democratic Party of Korea plans to request the Financial Services Commission to review its stance on the legal status of spot Bitcoin ETFs, following opposition to its previous statement.
In order to execute the promise it made during the campaign to enable spot Bitcoin exchange-traded funds (ETFs) with underlying virtual assets in the nation, the Democratic Party of Korea is now pursuing the necessary next measures. By submitting a request to the Financial Services Commission (FSC), the party intends to propose that the FSC rethink its assessment of the legal status of spot Bitcoin exchange-traded funds.
The Federal Securities Commission (FSC) has previously declared that domestic securities companies may be in violation of the Capital Markets Act if they list international spot Bitcoin exchange-traded funds (ETFs).
In South Korea, those who advocate for spot Bitcoin exchange-traded funds (ETFs) expressed their disapproval and worries in response to this remark.
The campaign promise made by the Democratic Party
One of the most important promises made by the Democratic Party of Korea during the election campaign was to make it possible for spot Bitcoin funds to be issued and traded inside the nation."
Spot Bitcoin exchange-traded funds would make it possible for individual investors to have access to these products without incurring any tax obligations.
With the implementation of a policy, the party intends to make it possible for local financial institutions to handle spot crypto exchange-traded funds.
Reexamination of the Existing Legal Status
There is a plan to request that the Federal Securities Commission (FSC) reconsider its assessment of the legal status of spot Bitcoin exchange-traded funds (ETFs).
The party is of the opinion that the regulatory structure need to be in accordance with the global trends and should be able to accommodate the ever-changing landscape of cryptocurrencies.
The Federal Security Council, on the other hand, has cautioned against moving ahead with the party's plan owing to the absence of a clear legal base and the party's unwavering commitment to do so.
The Importance of the Position of the FSC
In South Korea, the regulatory environment for financial products that are based on cryptocurrencies will be shape by the FSC's position on spot Bitcoin exchange-traded funds (ETFs), which will play a major role in moulding the landscape.
The Democratic Party is willing to investigate the possibility of modifying the existing financial legislation in the event that the FSC continues to be resistant to licencing spot crypto funds.
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