Ruling Party and Government: "Introduction of Spot Crypto ETFs to be Reviewed Considering International Trends"

Meeting between Crypto Exchanges and Government-Party Representatives

Ruling Party Pushing for 'Digital Virtual Asset Basic Law'

The government and the People Power Party announced on the 7th that they plan to review the introduction of virtual asset spot exchange-traded funds (ETFs), which are currently prohibited from trading.

Policy Committee Chairman Kim Sang-hoon said during a briefing after a meeting with virtual asset industry representatives at the National Assembly, "The government and ruling party will examine international trends and consider necessary legal infrastructure for the futures market before making a decision."

The government has maintained that careful consideration is needed regarding the introduction of virtual asset spot ETFs, citing concerns about the transfer of virtual asset risks to the financial system.

Chairman Kim said, "To address the possibility of illegal money laundering through virtual assets, we will refer to Financial Action Task Force (FATF) recommendations and overseas regulatory cases, and operate a 'Domestic Virtual Asset Anti-Money Laundering System Improvement Task Force' with participation from the Financial Supervisory Service, industry representatives, research institutes, and other relevant experts."

According to the government and ruling party, trading of virtual assets will be permitted for listed companies and professional investment corporations, excluding financial companies, from the second half of this year. Approximately 3,500 entities will be eligible, including 2,500 listed companies and 1,000 professional investment corporations.

Chairman Kim stated, "The government is preparing several measures to ensure the soundness and vitalization of the virtual asset market," adding that "non-profit corporations will be allowed to participate starting from the second quarter."

The People Power Party plans to accelerate legislative support to back the government's efforts to revitalize the virtual asset market.

Regarding the 'Digital Virtual Asset Basic Law' being prepared by the government, Chairman Kim said, "There have been requests to establish various legal mechanisms to position the domestic virtual asset market as a sound investment market," and added that "discussions have concluded to legislate and process this as quickly as possible."

Choi Su-jin, Hankyung.com reporter naive@hankyung.com