Per Sobija Mandueneun Shinmun, anonymous financial investment industry officials believe that any new crypto regulation will now have to wait until the end of legislative elections in April.
South Korea goes to the polls on April 10. The opposition Democratic Party currently holds a massive 55% of National Assembly seats.
The officials predicted an “overhaul” of crypto law, in line with President Yoon Seok-yeol’s election manifesto promises.
However, Seoul-based regulators will not look to follow suit with their counterparts in Washington. One expert said:
“We believe that revisions to the laws and regulations governing virtual assets will be possible only after the general election is over. [Regulators] will, in the meantime, monitor the market situation to see how successful the US Bitcoin spot ETFs prove to be.”
South Korean Ex-Police Officer Denies Crypto ‘Bribery’ Charges
The trial of a former South Korean police officer has begun in Gwangju. The ex-law enforcer denies taking bribes during a suspected crypto fraud investigation.#CryptoNews #SouthKoreahttps://t.co/peyRm8cNm3
— Cryptonews.com (@cryptonews) January 10, 2024
South Korean securities providers have been cautioned about offering Bitcoin ETF access to overseas customers.
Two major brokerages put their spot BTC ETF products on hold at the end of last week, following a warning from the Financial Services Commission (FSC).
The FSC has promised to “review” its stance. But is yet to comment any further on the matter.
The regulator is also set to issue formal rules about the listing and delisting of tokens, following a series of related controversies.
Traders and lawmakers criticized exchanges for their failure to streamline the delisting of the LUNC (formerly LUNA) token in the wake of the Terra ecosystem crash of May 2022.
Trading volumes on the Upbit crypto exchange over the past 14 days. (Source: CoinGecko)
South Korean ‘Crypto Revival’ Incoming?
Meanwhile, News1 reported that analysts are predicting bullish behavior from South Korean crypto traders following the US Bitcoin ETF news.
The media outlet quoted experts as stating that the retail crypto domestic market, “which has been stagnant for the past two years,” is set for a “revival.” One industry official explained:
“Despite its strict regulations, the South Korean market has the advantage of having a strong retail sector. When overseas markets revive, there is a strong tendency for [domestic investors] to follow suit.”
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