Korea Exchange chairman suggests launching cryptocurrency ETFs

What’s new? Korea Exchange Chairman Jung Eun-bo has called for the listing of cryptocurrency exchange-traded funds (ETFs) in South Korea, emphasizing the need to keep up with global financial markets. Jung stated:

“Korea is the third-largest real cryptocurrency trading country in the world. Cryptocurrency is a field that can create new value in the financial industry. The US has both futures and spot ETFs listed and actively traded. We need to allow cryptocurrency ETF trading without further delay.”

Jung’s remarks came amid South Korea’s stock market struggling with a shrinking investor base and structural problems. He has made clear that strengthening market oversight and increasing transparency are key priorities. His broader strategy includes pushing corporate value initiatives, protecting minority shareholders, and accelerating the delisting of non-viable firms. As for cryptocurrency ETFs, Jung believes their introduction will add depth to the financial market and provide investors with more regulated options to access digital assets.

South Korea will present a new bill on crypto regulation in the second half of the year

Officials intend to add rules for issuers of stablecoins to the document

Read more

What else is known? As regulators discuss financial reforms, Jung expressed concerns about over-regulation, especially with regard to corporate governance laws. He said South Korea’s financial markets should be more flexible and competitive, allowing for innovation rather than being burdened by excessive restrictions. He also supported relaxing regulations on pension funds’ equity investments, suggesting that strict restrictions on risky assets hinder long-term returns.

The cryptocurrency ETF market is expanding rapidly in major financial centers, especially in the United States. The US Securities and Exchange Commission (SEC) approved bitcoin futures ETFs in 2021, followed by the approval of spot bitcoin ETFs in January 2024, which triggered a significant influx of funds from institutional investors. This was followed by the launch of the ETH ETF. Major asset managers including Blackrock and Fidelity launched crypto ETFs, which increased their mass adoption.