Gairika Mitra
South Korea is set to launch a new policy advisory body, the VirtuΠ°l Asset Committee, as early as this month.
The committee will accelerate discussions on key issues, including the approval of virtual asset spot exchange-traded funds (ETFs), corporate investment in virtual assets, and the introduction of second-stage legislation.
It comprises 15 mΠ΅mbers and will be led by Vice Chairperson Kim So-young of the Financial Services Commission (FSC). It will include six government officials from key ministries, such as the Ministry of Justice and the Ministry of Science and ICT, alongside nine private-sector members.
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The committee is established under the Virtual Asset User Protection Act, which took effect in July. High on the agenda is the introduction of spot ETFs, which have already been listed in the United States for Bitcoin and Ethereum but remain unavailable in Korea. Π°dvocates have been pushing for these ETFs, particularly following the last general Π΅lection, arguing that their approval would modernize Koreaβs financial market and increase competitiveness.
FSC Aims to Balance Innovation and Regulation in South Koreaβs Crypto Market
The Financial Services Commission recently announced plans to examine the potential for introducing spot ETFs and corporate virtual asset accounts during a state audit. In addition to ETF approvals and corporate investment, the committee will oversee the development of second-stage legislation. This process is set to unfold gradually, with the FSC closely monitoring market trends and global developments. The initial legislation, the Virtual Asset User Protection Act, introduced basic regulations for virtual asset operators, while the second phase will focus on regulating virtual asset issuance and listing practices.
The FSC has emphasized that future guidelines will cover business operations, market-entry, issuance, and disclosure, all under the framework of a newly established statutory association. FSC Chairman Kim Byung-hwan said during the state audit on October 10 that there is a need to protect the market while encouraging growth and innovation.
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Responding to concerns from Democratic Party Representative Lee Kang-il about Koreaβs declining competitiveness in the global crypto market, Kim stressed the importance of balancing industry support with robust regulation. βI think that we need to balance protection and fostering (the virtual asset market). Since there are tasks for improving the system, we will form a virtual assΠ΅t committee comprised of private sector experts to look into it comprehensively,β Kim said.
A Chainalysis report earlier noted that South Korea remains Eastern Asiaβs largest market. South Korea reportedly leads the East Asia region in cryptocurrency value received, totaling around $130 billion during the studied period.Β
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GAIRIKA
Gairika is a cryptocurrency journalist with a focus on Bitcoin and blockchain technology.
