- The FSC will meet on November 6 to discuss regulation of spot crypto ETFs
- It will also discuss the purchasing of stablecoins, which are gaining in importance
- The FSC is creating a “civilian” committee” of nine leading analytical firms and institutes
- The “civilian” committee” will not include DAXA members to avoid conflicts of interest
It seems South Korea is about to enter the Bitcoin ETF spot race, following the USA and Japan, and allow South Korean firms to buy BTC, ETH, and other crypto with their balance.
To develop the regulation, the Financial Services Commission (FSC) will meet on Nov. 6 and form an independent committee that will not include crypto industry leaders from the Digital Asset Exchange Association (DAXA) to avoid conflicts of interest.
Also playing a big role in the discussion of crypto assets available for purchase by South Korean firms will be stablecoins, which are gaining increasing influence across the Asian region.
More on Crypto Adaptation and Regulation in South Korea
South Korea already has a large influence in crypto and a promising crypto environment, but all this time they have been slow in adopting spot crypto ETFs.
Now, after relevant initiatives in the USA and Japan, South Korea has apparently decided not to lag behind and make it possible for South Korean firms to use their balance to buy BTC, ETH, and other crypto assets.
For this purpose, the FSC will meet for the first time in a long time on November 6 and is also forming a “civilian” committee” of independent experts from leading analyst agencies like the Capital Market Research Institute and the Financial Research Institute.
The first meeting was scheduled back in September but was postponed due to delays in selecting members for the committee, according to the FSC.
FSC Chairman Kim Byung-hwan:
“We have made it a rule to exclude the industry from the new committee. We have tried to form a committee of experts.”
However, the crypto community may look at this with doubt, as there will be no industry leaders from the major crypto companies that are members of DAXA on this committee.
The upcoming meeting will discuss the possibility and terms of adopting spot crypto ETFs, as well as the regulation of stablecoins to meet the rapidly growing demand in investing and buying them for South Korean firms, which is “being talked about a lot nowadays” according to Kim Byung-hwan.
Conclusion
The adoption of spot crypto ETFs and access to invest in and buy crypto for companies should probably be positive news, but this is the point where it’s not just the what but the how.
How much of this civilian committee choice and desire for impartiality will it actually be, and how expert will the assessment and related regulatory initiatives be in such a case?
We will have more details tomorrow, stay tuned.
