Market News

South Korea's Crypto Landscape: Calls for ETF Approval and Crackdown on Illicit Activities

Seo Yoo-seok, Chairman of the Korea Financial Investment Association, has urged for the approval of cryptocurrency spot ETFs in South Korea to foster market growth and transparency. Citing influences from U.S. pro-crypto policies and the recent SEC acceptance of similar ETFs, Seo emphasized the need to not fall behind in the global crypto race. He proposed these ETFs as safer investment avenues for different generations, notably the financially robust older demographics. Additionally, security tokens' recognition and institutionalization are high on Kofia’s agenda, aiming to integrate them into the national financial framework and enhance the "robust digital asset ecosystem." In a separate move, South Korean police are intensifying efforts to dismantle cryptocurrency-funded drug trafficking operations. Arrests of 90 individuals, primarily Vietnamese nationals using crypto for illegal drug transactions, highlight the enforcement challenges and regulatory focus in curbing crypto-related crimes. These developments reflect a dual approach in South Korea’s crypto sphere, balancing regulatory advancement and stringent law enforcement.