South Korea's ruling party has demanded the expedited launch of a Bitcoin ETF.
Kim Sang-hoon, chairman of the political committee of South Korea's ruling People's Power Party, called on regulators to quickly approve the launch of spot exchange-traded funds (ETFs) linked to Bitcoin.
Currently, traders and large companies are positively disposed toward Bitcoin ETFs, so the authorities have no compelling reason to prohibit Korean investors from accessing these products, the party believes. Hong stated his willingness to amend the legislation if regulators are too slow to act.
The committee head believes that spot Bitcoin ETFs will allow investors to access the crypto market through regulated securities thanks to a more secure and transparent investment structure than purchasing cryptocurrency directly. BTC ETFs could strengthen South Korea's financial market, Hong believes.
The Party Committee announced that opening legal channels for foreign capital will facilitate the internationalization of assets denominated in the Korean won. This means that South Korea's national currency can be used internationally: foreign companies and investors will use the won not only for settlements with Korean counterparties but also for accumulating their foreign exchange reserves or issuing bonds.
Ruling party politicians hope that the country can thus reduce the global economy's dependence on the dollar and euro by elevating the won's status. Hong stated that the development of the crypto industry will allow South Korean financiers to more effectively integrate into the global economy.
In October, South Korea's Financial Services Commission (FSC) Chairman Lee Eog-weon announced the completion of amendments to the legislation regulating stablecoins. The proposed law aims to differentiate between payment stablecoins and bank deposits, and therefore proposes banning interest payments on stablecoins.
Source: cryptonews.net
