Kim Byoung-hwan, South Korea’s nominee for FSC chair, advised caution on corporate crypto transactions and opposed spot Bitcoin ETFs during a parliamentary session. Kim, nominated as FSC chief in July, emphasized investor protection after past market chaos.
South Korea’s crypto market has faced strict regulations, leading to the shutdown of exchanges like Huobi Korea, Cashierest, and Coinbit. These measures aim to combat money laundering and safeguard investors. Despite global interest, South Korea has not legalized crypto ETFs, citing concerns over market stability and the economy.
In June, the Korea Institute of Finance highlighted the risks of spot Bitcoin ETFs, pointing out their volatility compared to traditional assets. The strategic importance lies in ensuring financial stability and protecting investors in the evolving crypto landscape.
