The Democratic Party of Korea Pushes for Reconsideration of Spot Bitcoin ETFs
At Extreme Investor Network, we are dedicated to providing the latest news and updates on the crypto world. Today, we bring you an exclusive report on the Democratic Party of Korea’s efforts to enable spot Bitcoin exchange-traded funds (ETFs) in the nation.
Following a campaign promise to introduce spot Bitcoin ETFs with underlying virtual assets, the Democratic Party of Korea is taking steps to make this a reality. By requesting the Financial Services Commission (FSC) to reconsider its assessment of the legal status of spot Bitcoin ETFs, the party aims to pave the way for the introduction of these financial products.
The FSC had previously warned domestic securities companies against listing international spot Bitcoin ETFs, citing potential violations of the Capital Markets Act. This move has sparked concerns among advocates of spot Bitcoin ETFs in South Korea.
Campaign Promise and Policy Implementation
During the election campaign, the Democratic Party of Korea made a significant promise to allow the issuance and trading of spot Bitcoin funds within the country. These spot Bitcoin ETFs would provide individual investors with access to these products without additional tax obligations.
With the implementation of this policy, local financial institutions would be able to handle spot crypto exchange-traded funds, opening up new opportunities for investors in South Korea.
Reexamination of Legal Status
The Democratic Party of Korea is pushing for a reexamination of the legal status of spot Bitcoin ETFs by the FSC. The party believes that the regulatory framework should be aligned with global trends and be adaptable to the rapidly evolving landscape of cryptocurrencies.
While the Federal Security Council has raised concerns about the lack of a clear legal basis for the party’s plan, the Democratic Party remains steadfast in its commitment to promoting spot crypto funds.
Importance of FSC’s Position
In shaping the regulatory environment for cryptocurrency-based financial products in South Korea, the FSC’s stance on spot Bitcoin ETFs will be crucial. The Democratic Party is prepared to explore the possibility of amending existing financial legislation if the FSC continues to resist licensing spot crypto funds.
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