CryptoQuant CEO, Ki Young Ju, recently expressed concerns about South Korea’s reluctance to approve spot Bitcoin exchange-traded funds (ETFs). He compared the regulatory environment in South Korea to that of Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), suggesting that this could delay the approval of ETFs.
Ju pointed out that the Financial Services Commission (FSC) in South Korea has been rejecting ETFs linked to digital assets, leading to doubts about the future of the regulatory framework in the country. He emphasized that a leadership overhaul might be necessary for a more crypto-friendly environment.
Drawing parallels to Gensler’s approach to crypto regulation in the US, Ju highlighted the challenges faced by companies like MicroStrategy’s Michael Saylor if they were to operate in South Korea. He noted that the lack of understanding of Bitcoin among politicians, the hostile stance of the FSC, and the focus of the Korean IRS solely on taxation create a fragmented approach to crypto regulation in the country.
Despite the government’s unfriendly stance towards Bitcoin, South Korean citizens continue to show enthusiasm for the crypto market. Local exchanges like Upbit consistently rank among the top platforms globally in terms of trading volume, indicating a strong interest in digital assets among the population.
Ju’s remarks underscore the need for a more supportive regulatory environment in South Korea to foster innovation and growth in the crypto industry. A leadership change and a better understanding of digital assets among policymakers could help create a more conducive environment for companies and individuals looking to participate in the crypto market in the country.
