In this news brief, the formation of the Virtual Asset Committee in Korea will tackle the approval of spot Exchange Traded Funds (ETFs) and allow corporate accounts for cryptocurrency exchanges. This initiative to reduce the ‘Kimchi Premium’, i.e., an excess value of crypto investments in South Korea in comparison to the world, seems bullish towards more trading opportunities, says, CryptoQuant’s Ki Young Ju. Notably, the newly established structure will also provide enhanced regulations. The regulated Virtual Asset Committee is an impartial institution comprising ten members representing the Financial Services Commission (FSC) and the Ministries of Science and ICT, Finance and Strategy. Other members will hail from governmental ministries including those of Justice, Culture and Public Administration and Strategy. They’re supposed to advise the state’s administration on policy guidelines in a bid to normalize rules for managing all sorts of assets in Korea and elsewhere in the future. Particular interest will lie around possible Bitcoi approval for ‘spot’ exchange traded ETFs, and, considering safety concerns around online theft of money, in investigating prospects of ‘crypto corporate account permissions’. The Committee shall not confine to regulate South Korean crypto but aim beyond this regional boundary in safeguarding investor’s rights while trading globally. While other countries continue seeking approvals for ETF listings like the US which lately observed Canada’s filing in with respect to ‘proposing and launching Ethereum’ Bitcoin Exchange Traded Products to follow later, South Korea now sets eyes on Bitcoin trading market under a more comprehensive jurisdiction after the announcement regarding their formulated regulation protocols by the FSC this Monday (Oct 8th)
The committee not only handles the approval for bitcoin ETF’s, it additionally delves into the opportunities involving the sanction of corporate cryptocurrency account openings with Korean markets. This, many industry followers believe, can cut the premium levels in cryptos thereby normalizing and moderating it while also possibly lessening money laundering via corporate bitcoin account controls. As with any newly approved rules it will likely mean enhanced surveillance and control which industry regulators believe is inevitable considering market manipulations & other unfair trade procedures have a significant place for cryptos. Furthermore to oversee the market effectively against illegal tactics, the Korean officials also announce the formation of Digital Asset User Protection Foundation that strives towards safeguard funds against errant enterprises and provides a support scheme against theft of user funds once operations against such organisations shutdown due to breaching legal & regulatory practices imposed. With U.S markets following in on the suit via recent Canadian filings with intent of approving Ethereum – ETF related products followed eventually by those of Bitcoin – crypto fans from both continents, expect big news this and upcoming trading weeks with approval developments both in Canada (proven) and Korea that’d likely resound worldwide once approved as its value reaches beyond Korean bounds affecting trade globally given how most cryptos exist not strictly as an American or South Korean asset. However the Committee’s regulatory influence isn’t limited just South Korean trades as Korean financial organisations have already reached agreements about cryptocurrencies beyond country borders indicating plans of further cryptocurrency influence around world.
Source: initiated