Seo Yoo-seok, president of the South Korea Financial Investment Association (KOFIA), is asking lawmakers to launch spot-traded ETFs. The funds will track the two leading crypto coins, Bitcoin and Ethereum.
Speaking in a press conference held on Wednesday, Seo stressed, “I think this year […] we need to come up with a spot-listed fund (ETF) based on BTC and ETH.”
Currently, the nation’s Financial Services Commission (FSC) does not recognize crypto as underlying assets for securities, and this has prohibited financial institutions from offering crypto-backed ETFs.
South Korea regulators still cautious of institutional crypto adoption
During this year’s New Year’s Congress in Seoul, the KOFIA chief noted the caution shown by the country’s authorities.
He explained how the United States, under President Donald Trump, had made strides toward recognizing Bitcoin and Ethereum as national strategic assets. However, South Korea’s government has yet to make similar advancements in crypto regulations. Seo Yoo-seok said:
“The situation that comes from the Trump 2nd administration to the story of making Bitcoin a national strategic asset. There is no doubt about this technology.“
According to recent committee reports, reviews regarding corporate trading accounts are almost done. This will surely pave the way for virtual assets to be formally included in the South Korean financial market.
The KOFIA chair told reporters he is hopeful that the ongoing discussions within the government in regard to digital currencies will help authorities see the benefits of allowing traditional financial institutions to offer crypto ETF services.
Demand for virtual asset ETFs goes beyond age
Beyond the push for cryptocurrency ETFs, Seo’s association has been active in expanding other financial products aimed at older investors.
Seo believes these kinds of products will become more popular in the future as the financial market adapts to the needs of an aging population. Now, he is intended on helping young oppas and eonnis.
There is a plan intended to offer an Individual Savings Account (ISA) to minors.
“The demand for virtual assets isn’t just limited to the younger MZ generation,” he asserted. “People in their 50s and 60s are also showing a strong interest in these assets […] that interest should be met with more accessible investment options like ETFs.”
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