Twist in South Korea, where the new financial regulatory committee dedicated to cryptocurrencies could abolish the current ban on crypto spot ETFs.
South Korea and new regulatory committee to discuss banning crypto spot ETFs
In South Korea there could be a change of scenario regarding the current ban on spot crypto ETFs. THE new FSC crypto committeethe country’s financial regulatory authority, is considering what to do next.
From what has been reported, it appears that the new Committee for Cryptocurrencies, an advisory group recently formed to discuss digital asset policies, will review the current ban.
This gentler approach compared to the rigidity of the past, comes after lawmakers demanded a change.
In fact, the FSC reiterated its strict stance of not wanting to approve spot Bitcoin ETFs last January, even though they were given the green light in the United States. This position was intended to convey the message of an absolute desire not to follow in the footsteps of the United States.
Until today, in South Korea, local financial institutions are prohibited from owning and purchasing cryptocurrencies. Additionally, investing in companies offering cryptocurrencies is also prohibited.
As a result, the country has always remained firm on the idea that it was prohibited to issue and launch ETFs on Bitcoin and on Spot crypto.
However, today, something is changing. From what emerges, in fact, it seems that the different parties promised the approval of local Bitcoin ETFs during their general election campaigns, from the beginning of this year.
South Korea and regulations to approve spot crypto ETFs
Already last April, after the victory of the Democratic Party in South Korea we talked about preparation for what was to come being the abolition of the ban on spot crypto ETFs.
At that time it was said that such an introduction would mean a historic moment for the country but also for the entire crypto market in Asia.
In fact, this decision would represent a wider acceptance and integration of cryptocurrencies into the country’s rigid financial system.
Today, with the establishment of the new internal committee of the FSC, dedicated solely to cryptocurrencies, the promise of the electoral campaign could perhaps become reality.
Mass-produced NFTs like regular cryptocurrencies
Staying in the context of crypto regulation in South Korealast June, new guidelines were established involving non-fungible tokens.
In fact, it appears that some NFTs will be treated as regular cryptocurrencies, introducing a regulatory framework intended to govern the growing market for mass-produced NFTs.
In practice, the new FSC guidelines will be applied to Mass-produced NFTs that will be traded like normal crypto. More precisely, the trading of these NFTs must comply with anti-money laundering (AML) regulations and KYC requirements, in order to prevent the misuse of these digital assets.
Mass-produced NFTs are all NFTs created in large quantities and intended for frequent trading.
