Korea Exchange chairman urges South Korea to approve cryptocurrency ETFs, warning that delays could hurt financial innovation. Learn why crypto ETFs matter.
Korea Exchange Chairman Calls for Immediate Cryptocurrency ETF Listings
Jung Eun-bo, chairman of the Korea Exchange, has called for the approval of cryptocurrency exchange-traded funds (ETFs) in South Korea, warning that delays could hinder the nation’s financial competitiveness. Jung stressed that South Korea, as the world’s third-largest real cryptocurrency trading country, must embrace crypto ETFs to align with global markets.
“The U.S. has both futures and spot ETFs listed and actively traded. We need to allow cryptocurrency ETF trading without further delay,” Jung said in a recent interview in Seoul.
A Solution for Market Challenges
Jung’s push for crypto ETFs comes as South Korea’s stock market faces structural issues, including a shrinking investor base, struggling companies, and excessive corporate splits. He believes introducing cryptocurrency ETFs would provide regulated investment opportunities, deepen market liquidity, and enhance financial innovation.
Balancing Regulation and Growth
While advocating for crypto ETFs, Jung also warned against excessive legislation that could stifle financial innovation. He has called for a balanced approach, emphasizing the need for regulatory flexibility while maintaining market oversight. Additionally, he supports loosening restrictions on pension fund investments in equities to improve long-term returns.
Global Crypto ETF Expansion
The cryptocurrency ETF market has seen rapid expansion worldwide. The U.S. Securities and Exchange Commission (SEC) approved bitcoin futures ETFs in 2021 and spot bitcoin ETFs in January 2024, leading to significant institutional inflows. Major financial hubs like Canada, Germany, and Switzerland have also embraced crypto ETFs, offering investors regulated exposure to digital assets.
Despite South Korea’s active crypto market, the country has yet to introduce crypto ETFs, raising concerns about falling behind in financial innovation. Jung’s comments highlight the urgency for South Korea to act.
With global adoption accelerating, South Korea faces a critical decision. Approving cryptocurrency ETFs could strengthen the country’s financial markets and attract more investors. Policymakers must now determine whether to follow the global trend or risk missing out on a transformative financial opportunity.
