South Korea remains hesitant to approve cryptocurrency exchange-traded funds (ETFs), falling behind the United States in institutional adoption, according to a key financial industry figure.
Seo Yoo-seok, president of the Korea Financial Investment Association (KOFIA), has urged lawmakers to allow spot-traded ETFs tracking Bitcoin and Ethereum, citing increasing investor demand and global trends, according to the Cryptopolitan.
Speaking at a press conference on Wednesday, Seo emphasized the need for South Korea to keep pace with financial advancements in major markets. “I think this year we need to come up with a spot-listed fund based on BTC and ETH,” he stated.
Regulatory hurdles slow institutional adoption
Unlike the U.S., which has recently approved spot Bitcoin ETFs, South Korea’s Financial Services Commission (FSC) does not classify cryptocurrencies as underlying assets for securities. This regulatory stance has prevented local financial institutions from launching crypto-backed ETFs, limiting investment opportunities for both retail and institutional investors.
Seo pointed to the shifting global landscape, referencing efforts by the U.S. government to recognize Bitcoin and Ethereum as strategic financial assets. He believes ongoing discussions within South Korea’s regulatory bodies could eventually lead to policy changes.
Beyond the crypto sector, KOFIA has also pushed for expanding investment products catering to an aging population. The association is exploring new Individual Savings Accounts (ISAs) to offer broader access to financial products, including digital assets.
“The demand for virtual assets isn’t just limited to younger investors,” Seo noted. “Older generations are also showing increasing interest, and the market should respond accordingly.”While South Korea remains cautious, industry leaders hope regulatory shifts will allow the nation to remain competitive in the rapidly evolving digital asset market.
Meanwhile, Senator Ted Cruz is championing Texas as a global hub for Bitcoin innovation in the U.S., aligning the state’s resources with the growing digital asset industry. With three Bitcoin mining facilities in West Texas, Cruz is merging advocacy with action.
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