TechFlow news, December 8 — According to South Korean media Naver, prospects for approval of a spot cryptocurrency ETF in South Korea within this year appear slim, as legislative progress has significantly lagged.
Currently, four related bills are pending in the South Korean National Assembly. These include amendments to the "Capital Markets Act" and a draft of the "Digital Asset Market Industry Act" proposed by lawmakers from the ruling Democratic Party, as well as amendments to the "Capital Markets Act" proposed by lawmakers from the opposition People Power Party. The core contents of these bills include incorporating crypto assets into the eligible underlying assets for ETFs, permitting trust institutions to custody crypto assets, and establishing a legal basis for the crypto derivatives market.
However, due to organizational restructuring of financial regulatory agencies and government policies focused on revitalizing the stock market consuming policy resources, the institutionalization of crypto assets has been relegated to a lower priority. Financial authorities are currently prioritizing the enactment of the "Basic Law on Digital Assets," and discussions on institutionalizing ETFs and derivatives are expected to be delayed.
