The South Korean Financial Services Commission submitted a thorough reform proposal to the Presidential Committee for Policy Planning. The proposal outlines plans for the government to permit indigenous spot crypto ETFs and ease regulations for Korean won-collateralized stablecoins by 2025.
The FSC believes that such changes will enhance investor participation and home country competitiveness for digital finance. Regulators aspire to introduce spot exchange-traded fund monitoring virtual currencies like Bitcoin by the end of 2025.
The regulators will settle upon a regulatory framework and establish operational infrastructure for the establishment, listing, custody, and pricing of such funds. The regulators also aspire to build safeguards to safeguard retail investor interests in the process.
The strategy includes mandatory regulations for publicly traded companies to bring back profits from within short-term trading operations starting this year.
Regulators will also delist companies showing insolvent tendencies or unusual trading patterns like manipulation of stocks. Culprits of market manipulation will be held responsible for executive disqualification and bans on investing in financial investment products with a hard one-strike policy.
President lee champions bitcoin spot crypto ETF issuance
President Lee Jae-Myung committed to enabling the issuance and trading of Bitcoin spot ETFs during his campaign. The move comes after the U.S. approved similar ETFs in January last year. This approval attracted institutional investors and contributed to higher Bitcoin prices.
The FSC also targets improved oversight of virtual asset business operations and unfair practices. This includes steps to enhance listing requirements and disclosures, as well as applying fines up to twice the gains earned through misconduct. They will impose these surcharges actively and involve the prosecution when needed.
Regulatory bodies are refining stablecoin policies to align with global standards. They also encourage cryptocurrency exchanges to reduce fees by publishing cost comparisons.
The Youth Future Savings Fund will be introduced soon to provide new financial support. It will complement existing programs aimed at helping the younger generation with savings.
