Chairman of the Korean Stock Exchange expresses interest in launching a cryptocurrency ETF this year

According to Cryptoslate, Eun Bo Jeong, the chairman of the Korean Stock Exchange, has expressed interest in launching cryptocurrency based ETFs this year to meet global demand for such products. At the opening ceremony of the securities and derivatives market on January 2nd, Eun Bo Jeong emphasized the importance of innovative financial products in revitalizing the Korean capital market. Eun Bo Jeong focused on the economic challenges faced in the past year, including domestic economic contraction, slowing export growth, and geopolitical tensions. He explained that these factors have caused the South Korean financial market to lag behind its global peers. Inspired by the successful launch of Bitcoin related financial products internationally, the exchange plans to explore new avenues, including launching ETFs related to cryptocurrencies, to address these issues. This announcement marks a possible shift from South Korea's previous stance. Last year, the Financial Services Commission (FSS) of South Korea prohibited asset management companies from providing ETFs linked to cryptocurrency related companies such as Coinbase. However, due to regulatory barriers, the potential of cryptocurrency ETFs remains uncertain. CryptoQuant CEO Ki Young Ju expressed concerns about South Korea's readiness to approve such products. Ju compared South Korea's cautious regulatory stance to the US SEC, whose boycott of cryptocurrency ETFs has delayed their launch for over a decade until 2024.