The source asserted that “The US has been the front-runner on the cryptocurrency market and related derivatives,” noting that despite “strong voices supporting the launch of bitcoin ETFs within the market,” they are “observing the progress and response of the U.S. Securities and Exchange Commission’s decision on bitcoin ETFs.”
The source also stated that the launch of cryptocurrency ETFs would require “a solid index, adding that the prospective index is “being discussed expansively at [The Korea Exchange] because it would eventually concern investor protection issues.”
Lee Kyung-ho, a professor at Korea University’s Graduate School of Information Security, described the Korea Exchange’s framework as intended to “minimize the risk of integrating ETF transactions” in South Korea’s cryptocurrency sector.
The professor emphasized that a permissive framework pertaining to cryptocurrency ETFs would require strict know-your-customer (KYC) and anti-money laundering (AML) procedures, stating that “The government has been requesting cryptocurrency exchanges to adopt what is known as the rules of KYC and AML to boost transparency in transactions.”
Lee also asserted that South Korea’s government has recently been expanding its investments into the “research and development of blockchain technology.”
When do you think the cryptocurrency industry will see an ETF receive regulatory approval? Share your thoughts in the comments section below!
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