South Korea’s Office of the President has urged the financial regulator to reconsider the possibility of approving a local spot bitcoin exchange-traded fund (ETF), an official of the presidential office said. Sung Tae-yoon, the chief of staff for policy of the presidential office, said the South Korean government is exploring ways to incorporate foreign affairs into local regulations, indicating the country’s openness to launching spot crypto ETFs.
The presidential office’s comment comes after the Financial Services Commission last week warned local firms that brokering foreign-listed bitcoin spot ETFs might be interpreted as a violation of capital market regulations. Following the announcement, several major local securities companies suspended trading of existing foreign spot bitcoin ETFs.
In other parts of Asia, Singapore and Thailand have stated that they are not considering local spot bitcoin ETFs. The Monetary Authority of Singapore informed CNA that spot bitcoin ETFs are not granted for offering to local retail investors. Thailand’s Securities and Exchange Commission also stated that it does not plan to approve local firms to launch such ETFs, as reported by the Bangkok Post.
Experts have suggested that Hong Kong could be the next hub in Asia to introduce a local spot crypto ETF, with its financial regulators publishing two circulars in December to address the requirements for such ETFs. Livio Weng, COO of Hong Kong-based crypto exchange HashKey, mentioned that 10 fund managers, including some backed by Chinese capital, are looking into launching spot crypto ETFs in the city. This demonstrates the increasing interest and exploration of ETF opportunities within the Asian market.
