The Democratic Party of Korea is now pursuing the next necessary steps to fulfill its promise during the election campaign to revitalize Bitcoin exchange-traded fund (ETF) spot as the country’s primary virtual asset. The parties plan to submit a request to the Financial Services Commission (FSC), proposing that the FSC reconsider its assessment of the legal status of Bitcoin spot exchange-traded funds.
The Federal Securities Commission (FSC) previously declared that domestic securities firms may violate the Capital Markets Act if they list an international spot Bitcoin exchange-traded fund (ETF).
in koreaAdvocates for spot Bitcoin exchange-traded funds (ETFs) expressed opposition and concerns about this statement.
Democratic Party’s presidential election promise
“One of the most important promises the Democratic Party of Korea made during the election was to allow physical Bitcoin funds to be issued and traded domestically.”
Spot Bitcoin exchange-traded funds allow individual investors to access these products without incurring tax obligations.
Through policy implementation, the party plans to allow local financial institutions to process spot cryptocurrency exchange-traded funds.
Reconsideration of existing legal status
There are plans to ask the Federal Securities Commission (FSC) to review its assessment of the legal status of physical Bitcoin exchange-traded funds (ETFs).
The parties are of the opinion that the regulatory structure should be in line with global trends and be able to accommodate the ever-changing cryptocurrency environment.
On the other hand, the Federal Security Council warned against pursuing the party’s plan, citing the lack of a clear legal basis and the party’s firm will.
Importance of FSC’s position
In Korea, the regulatory environment for cryptocurrency-based financial products will be shaped by the FSC’s position on spot Bitcoin exchange-traded funds (ETFs), which will play an important role in creating the environment.
Democrats are willing to explore the possibility of amending existing financial laws if the FSC continues to resist authorizing in-kind cryptocurrency funds.
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