Uncertain Korean Bitcoin Spot ETF... US Holds 145 Trillion Won for Over a Year

Trading Ban Regulations Expected to Continue Temporarily

"Global Trend Should Allow Launch"

In the virtual asset market, financial companies are expected to be temporarily restricted from trading Bitcoin Spot ETF. While major countries, including the United States, are speeding up the launch of Bitcoin Spot ETFs and stablecoin regulations, it is pointed out that only Korea is lagging behind.

According to Bloomberg on the 3rd, the operating assets of 12 Bitcoin Spot ETFs listed on the US stock market recorded $103.6 billion (approximately 145 trillion won). Since the US Securities and Exchange Commission (SEC) approved the launch of ETFs in January last year, more than $100 billion has been gathered.

On the other hand, Korea has completely banned the trading of Bitcoin Spot ETFs listed overseas since January. This is because the current law does not include virtual assets (such as Bitcoin) in the items that can be considered as basic assets for ETFs. Domestic asset management companies are also blocked from listing Bitcoin Spot ETFs. To launch a Bitcoin Spot ETF, financial institutions must hold Bitcoin through legal accounts, but currently, the opening of accounts itself is blocked.

In the financial investment industry, there is a strong voice that "the launch of Bitcoin Spot ETFs should be allowed in Korea in line with global trends." However, experts generally believe that there are institutional and infrastructure challenges to immediately launching Bitcoin Spot ETFs in Korea. In particular, there are many indications that the basis for virtual asset custody (custody) is unclear. A related person from the Virtual Asset Committee said, "To protect ETF investors, it is necessary to impose a duty of care on custodians and to establish a system of separation of assets," but also pointed out that "the current system lacks such content."

The Financial Services Commission plans to hold a second meeting of the Virtual Asset Committee in mid-next month to discuss major issues to be included in the Virtual Asset Business Rights Act. The Business Rights Act is expected to include regulations related to the issuance and distribution system of virtual assets and stablecoins. A related person from the Virtual Asset Industry said, "The European Union will fully implement stablecoin regulations under the MiCA (Markets in Crypto-Assets) law from the 30th of this month," and emphasized that "Korea should also speed up the preparation of the Business Rights Act to not fall behind global trends."

Reporter Seohyeong Kyo seogyo@hankyung.com