South Korea urges financial regulator to reassess Spot Bitcoin ETF

Spot Bitcoin ETF applications have seen the light at the end of the tunnel in the US. The US SEC gave a green light last week, paving the way for ETFs of other crypto tokens. Talks are buzzing around town that Ether ETF could be the next offering, triggering the likes of BlackRock to make a move. Now, it is South Korea that has come forward with a message for financial regulators, seeking authorities to consider approving Spot Bitcoin ETF in the region.

If granted approval, its functionalities will be virtually identical to those of the product on American soil. Sung Tae-Yoon confirmed that the communication came directly from the South Korean president’s office. According to them, the government is investigating the possibility of incorporating foreign affairs into local regulatory bodies. In other words, the government is amenable to the Spot Bitcoin ETF being presented for deliberation and subsequently granting its sanction.

However, it is not exactly as seamless as it appears. The Financial Services Commission issued a warning earlier, stating that local firms may want to be careful before brokering foreign-listed Bitcoin ETFs. The Commission has cited the possibility of a violation of capital market regulations, triggering a series of dismissals of trading for the product.

Nevertheless, crypto enthusiasts have coined South Korea as the next Asian hub for crypto trading. Other Asian regions that were previously teased to inch closer to that status are Singapore and Thailand.  Both areas have dismissed the prospect of approving Spot Bitcoin ETF applications. The Monetary Authority of Singapore has stated that Bitcoin ETFs are not available to local retail investors. Thailand’s SEC has confirmed that it has no plans to establish a Bitcoin ETF lineup anytime soon.

However, the US Securities and Exchange Commission’s approval of the Bitcoin ETF has done little to boost the token. BTC did cross the $47k milestone when news of approval made headlines. BTC has dropped to $41,200.45, bringing it closer to the $38k resistance margin. Bitcoin was initially expected to turn the tables following the approval, but this has not occurred. Members of the cryptocurrency community hope the upcoming Bitcoin halving will bring the token closer to its all-time high.

The current valuation in the market is down by 3.71% in the last 24 hours, 10.88% in the last 7 days, and 3.82% in the last 30 days. The only thing keeping BTC holders optimistic about the future of Bitcoin is that the token has surged by 97.90% in the previous 1 year.

Moreover, its market cap has declined by 3.72% while the 24-hour volume has jumped by 31.37%. South Korea’s desire to have Spot Bitcoin ETF on the table for discussion and potential approval depicts its openness to moving forward. It may continue to face backlash from local authorities and firms; it is only time that will eventually tell what happens to Bitcoin ETF products in the country.