Local media has reported that a South Korean exchange is waiting for regulators in the United States to make a ruling regarding the highly anticipated Vaneck cryptocurrency exchange-traded fund (ETF) before determining its stance pertaining to virtual currency ETFs.
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Exchange Awaits US Ruling to Develop ETF Policy
A report published by The Korea Herald has asserted that officials at a South Korean exchange are waiting for United States lawmakers to establish a precedent regarding cryptocurrency ETFs. The report quotes an anonymous source claiming to work as an official at South Korea’s main bourse operator, Korea Exchange.
The source asserted that “The US has been the front-runner on the cryptocurrency market and related derivatives,” noting that despite “strong voices supporting the launch of bitcoin ETFs within the market,” they are “observing the progress and response of the U.S. Securities and Exchange Commission’s decision on bitcoin ETFs.”
The source also stated that the launch of cryptocurrency ETFs would require “a solid index, adding that the prospective index is “being discussed expansively at [The Korea Exchange] because it would eventually concern investor protection issues.”
Permissive Korea Exchange’s Policies for Bitcoin ETF Likely to Be Accompanied by Strict KYC Guidelines
Lee Kyung-ho, a professor at Korea University’s Graduate School of Information Security, described the Korea Exchange’s framework as intended to “minimize the risk of integrating ETF transactions” in South Korea’s cryptocurrency sector.
The professor emphasized that a permissive framework pertaining to cryptocurrency ETFs would require strict know-your-customer (KYC) and anti-money laundering (AML) procedures, stating that “The government has been requesting cryptocurrency exchanges to adopt what is known as the rules of KYC and AML to boost transparency in transactions.”
Lee also asserted that South Korea’s government has recently been expanding its investments into the “research and development of blockchain technology.”
When do you think the cryptocurrency industry will see an ETF receive regulatory approval? Share your thoughts in the comments section below!
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Samuel Haig is a journalist who has been completely obsessed with bitcoin and cryptocurrency since 2012. Samuel lives in Tasmania, Australia, where he attended the University of Tasmania and majored in Political Science, and Journalism, Media & Communications. Samuel has written about the dialectics of decentralization, and is also a musician and kangaroo riding enthusiast.