A new regulatory body in South Korea, tentatively named the Virtual Assets Committee, is poised to launch this month, with Bitcoin ETF approval being a key focus. According to News1, the committee could hold its inaugural meeting as early as this month, operating under the Financial Services Commission (FSC), the country's main financial regulator. Bitcoin ETF Discussions Ahead The launch of this committee is expected to accelerate discussions on approving Bitcoin and Ethereum spot ETFs.
Insiders in the industry have indicated that the committee will also explore allowing corporate investments in virtual assets. Several South Korean firms are eager to join the cryptocurrency investment space, following the lead of companies in the US and Japan. A financial expert revealed that multiple domestic firms are interested in the possibility of acquiring Bitcoin for their balance sheets, with some considering Ethereum investments as well, contingent on regulatory approval.
Despite ongoing pressure from both the industry and lawmakers, the FSC has postponed discussions regarding Bitcoin ETF approvals multiple times. Upcoming Committee Meeting The financial authorities aim to finalize the committee's membership by the end of October and plan to hold a kickoff meeting soon after. This committee was established under the Virtual Asset User Protection Act, which took effect in July. The FSC has appointed Kim So-young as the head of the committee, which will consist of 15 members, including five officials from various ministries, such as the Ministry of Economy and Finance, the Ministry of Justice, and the Ministry of Science.
The remaining nine members will be sourced from the private sector. The FSC has reiterated that no decisions on Bitcoin ETFs will be made until the committee is operational. Recent audits have highlighted the importance of addressing corporate virtual asset accounts as part of the committee's agenda.
Industry Pressure for Change There is increasing pressure from political and industry leaders for regulatory action, especially as US firms move ahead with Bitcoin ETF launches and corporate Bitcoin purchases. During a National Assembly meeting, FSC Chairman Kim Byung-hwan discussed the new committee but faced criticism from lawmaker Lee Kang-il of the Democratic Party, who stated that South Korea's crypto market has lost its competitive edge.
In response, Kim emphasized the regulators' intent to balance investor protection with the need to foster growth in the crypto sector. He acknowledged the ongoing concerns regarding market monopolies, pledging that the FSC would investigate allegations that certain exchanges are being favored over others.
As the new committee prepares to meet, the crypto community will be watching closely for developments regarding Bitcoin ETF approvals and broader regulatory frameworks.
October 2024, Cryptoniteuae