The Chairman of the South Korean Stock Exchange, Jeong Eun-bo, urges swift action to institutionalize the nation’s crypto market to avoid falling behind global competitors.
In a recent interview, Eun-bo emphasized the need for the crypto sector to be treated similarly to traditional finance to navigate regulatory challenges effectively.
He warned that without this institutional framework, South Korea risks losing its competitive edge to countries that have already adopted favorable regulations for virtual assets.
“If we continue to treat virtual currency as merely speculative, we will lose out on international competitiveness,” Eun-bo stated.
Eun-bo pointed out the rapid evolution of the global crypto market, highlighting that trading volume in this sector has outpaced that of the local stock market.
“The average daily trading volume of the domestic stock market is about 20 trillion won ($13.9 billion), but the virtual currency market has consistently exceeded this since the election of Donald Trump as U.S. President,” he noted.
His remarks followed his participation in the World Exchange Market summit, where the future of cryptocurrencies garnered significant attention.
As it stands, no crypto firms are officially listed on the South Korean Stock Exchange, and local companies are prohibited from including crypto assets in their financial statements. Additionally, the government has yet to approve the launch of Bitcoin (BTC) spot exchange-traded funds.
Insiders in the financial investment community have criticized the current regulatory approach, suggesting that prohibiting Bitcoin spot ETFs while permitting leveraged trading for conventional ETFs is illogical from an investor protection perspective.
Investors will need to remain patient, as substantial developments regarding Bitcoin spot ETFs and the broader crypto market in South Korea are unlikely in the near future.
Recent reports confirm that the South Korean National Assembly has paused all crypto-related regulations until mid-2025 amidst the impeachment proceedings of President Yoon Suk-yeol.
The parliament recently voted to impeach President Yoon following a controversial martial law decree that plunged the nation into a political crisis. The vote resulted in a motion passing with a count of 204-85, temporarily suspending Yoon’s presidential powers.
The Constitutional Court now has up to six months to determine whether to uphold the impeachment or reinstate the presidency.
