On October 10, 2024, South Korea's Financial Services Commission (FSC) is poised to lift its ban on crypto exchange-traded funds (ETFs), potentially joining the ranks of other Asian nations embracing regulated crypto products. This decision follows the U.S. approval of Bitcoin and Ethereum ETFs earlier this year, which has spurred interest across Asia.
The FSC plans to establish a Virtual Asset Committee to evaluate various crypto asset ETF products. This committee will be led by the FSC's vice chairman and include nine members from different government ministries and the private sector. The South Korean government, under a pro-crypto administration, aims to facilitate institutional access to these investment vehicles.
As the fourth-largest economy in Asia, South Korea's move could significantly impact the crypto market, allowing institutional investors to tap into a region with high crypto adoption rates. Following the U.S. success, countries like Hong Kong, Taiwan, and Thailand are also advancing their crypto ETF regulations, indicating a regional trend toward embracing these financial products.