According to a recent report, it is now clear that the American crypto community is not the only one actively anticipating the SEC’s decision on crypto exchange-traded funds (ETFs). An official at South Korea’s sole securities exchange operator, the Korea Exchange (KRX), made it known that the agency is monitoring and following the SEC’s moves in regard to Bitcoin (BTC) exchange-traded funds (ETFs).
US [SEC]’s Still Yet to Approve Crypto ETFs
Up till now, the U.S. Securities and Exchange Commission (SEC) has not approved any crypto ETF. The agency has only rejected or postponed its decisions on whether to approve any proposed crypto-related ETFs.
The Korea Exchange’s (KRX) is Observing SEC’ Moves
The KRX official whose name or personal information was not disclosed said that:
“The US has been the front-runner on the cryptocurrency market and related derivatives, and there are strong voices supporting the launch of Bitcoin ETFs within the market — which is why we are observing the progress and response of the US [SEC]’s decision on Bitcoin ETFs.” The official added that KRX is extensively discussing the provision of a solid Bitcoin index,which would be “required for the launch of such ETFs […] when […] commercialized and integrated into the market […] because it would eventually concern investor protection issues.”
As a result of Korea’s more lenient regulatory framework, the country has seen the launch of blockchain ETFs by local investment banks and asset management firms.
According to Lee Kyung-ho, a professor at Korea University’s Graduate School of Information Security, the health of the local blockchain sector would eventually pave the way to cryptocurrency ETF integration.
He stated that: “With the government expanding its investment in research and development of blockchain technology, the projects are expected to minimize or eliminate the risk of integrating ETF transactions in the cryptocurrency market.”
Lee further noted that the agenda of any regulatory guideline is centred on a robust Know Your Customer and Anti-Money Laundering compliance. With the increase in demand for documentation by domestic exchange, Korea is well prepared.