"Bitcoin ETF is a killer app"... The Democratic Party and industry press financial authorities for faster legislation

The Democratic Party and Industry Urge Introduction of Bitcoin Spot ETF

"Bitcoin ETF is a killer app... a new market will open"

Financial authorities: "Need a cautious approach"

Min Byung-deok: "Inaction in the name of caution is dereliction of duty"

Members of the National Policy Committee of the Democratic Party and industry representatives have emphasized the urgency of introducing a Bitcoin spot exchange-traded fund (ETF), stating that the financial authorities and the government must work together to accelerate legislative discussions.

On the 30th, at the 'National Assembly Forum for the Enactment of the Digital Asset Innovation Act' held at the National Assembly Members' Office Building, Min Byung-deok, a Democratic Party lawmaker, said, "As a tsunami of digital assets approaches from the United States, doing nothing in the name of caution is dereliction of duty," and urged, "Financial authorities should quickly present their own stance and swiftly review the bills proposed by the National Assembly and the private sector."

Yoo Dong-soo, a Democratic Party lawmaker, emphasized, "It is urgent to introduce a Korean-style Bitcoin spot ETF to protect the value of the won," while Lee Kang-il, also a Democratic Party lawmaker, stated, "Korea is losing global competitiveness in the asset market, but it's not too late if we expedite legislation now." Kang Joon-hyun, another Democratic Party lawmaker, noted, "It's positive that the current administration has started full-fledged discussions," adding, "We will bridge the gap between the government and the private sector and swiftly promote the legislation." Kim Seung-won, another Democratic Party lawmaker, said, "The National Assembly will do its utmost to create a good bill."

Industry: "Bitcoin Spot ETF is a Killer App... Will Change the Traditional Financial System"

The financial industry underlined that the Bitcoin spot ETF could become a "killer app" that will not only serve as an investment product but also transform the structure of the capital market.

Lee Se-il, manager at Shinhan Investment Corp., said, "Korea ranks high globally in ETF trading volume. If the Bitcoin spot ETF is permitted, a new market with global competitiveness will open." He added, "We cannot survive on trade alone. The financial industry must grow, and the Bitcoin spot ETF will be the core 'killer app' for this."

He also remarked that digital assets should not be viewed merely as products. Lee noted, "Bitcoin spot ETFs and security token offerings (STO) are already changing traditional financial systems. Overseas financial firms are already introducing stablecoins and security tokens, seeking to enter the domestic market." He further warned, "If Korea falls behind here, the 'global rich get richer, poor get poorer' and capital outflow may accelerate."

Kim Nam-ho, head of department at Mirae Asset Global Investments, also commented, "ETFs are a means to secure both investment accessibility and stability. People in their 20s and 30s already handle digital assets like stocks, but those in their 40s and above face high entry barriers. The Bitcoin ETF will lower this barrier."

He also said that investing in digital assets within the protection system of traditional finance offers stable investment options within the institutional framework. Kim forecasted, "As the United States has introduced the Bitcoin spot ETF, Bitcoin's price is rising. The introduction of a Bitcoin spot ETF in Korea can also provide security and convenience to domestic investors."

He added, "A Bitcoin spot ETF is an integrated product covered by both the Capital Markets Act and the Digital Asset Basic Act, and because it is uncharted territory, we must address institutional uncertainties and build market trust to ensure a successful launch."

Financial Services Commission: "Market Expansion Expected...Need for Prudence in Introduction"

The Financial Services Commission (FSC) acknowledged the market expansion effect of introducing a Bitcoin spot ETF but maintained a cautious approach, stressing the need to comprehensively consider capital market stability and investor protection.

Nam Chang-woo, deputy director at the FSC, explained, "A Bitcoin spot ETF increases accessibility to virtual asset investments, and by being subject to capital market regulations, can enhance investor trust. The entry of financial institutions into the market is also expected to expand the base of virtual assets."

However, he emphasized, "There are many factors to consider, such as the possibility of capital outflow from domestic stock markets, issues of stability and soundness arising from the connection of traditional financial and virtual asset markets, and issues of investor protection." He added, "Detailed review is necessary regarding structures such as cash and in-kind creation, custody, index calculation standards, and comprehensive evaluation across setup, operation, and assessment."

Regarding such caution by the FSC, lawmaker Min Byung-deok pointed out, "Although the FSC said it would participate in related discussions, no actual consultations have taken place. Just as cars were once regulated by horse standards in the automobile industry, innovation in digital assets is also blocked by applying past financial standards."

He continued, "Digital assets are approaching like a tsunami, but if we approach them only from the perspective of traditional economics, institutionalization will be delayed. If there are concerns, solutions should be found, not just stopping. There is no time to waste. Direction is important, but speed is even more crucial."