Is South Korea’s Exclusion of Crypto Experts a Concern as Spot Bitcoin ETF Discussions Take Place?
A new regulatory body for digital currencies in South Korea is set to begin discussions on the potential approval of spot Bitcoin exchange-traded funds (ETFs) this week.
According to News1, the Virtual Asset Committee will hold its inaugural meeting on November 6, with spot cryptocurrency ETFs at the top of its agenda.
The committee, established under the Financial Services Commission (FSC), will consider allowing South Korean companies to invest a portion of their assets in Bitcoin, Ethereum, and other cryptocurrencies. Additionally, the committee will review regulatory frameworks for stablecoins as part of Seoul’s efforts to create a comprehensive regulatory environment for the digital currency sector.
However, the decision not to include any experts from the cryptocurrency industry may raise concerns among stakeholders. Reports indicate that the FSC has opted to exclude any executives from digital currency companies from the committee to avoid potential conflicts of interest.
Instead, the nine-member committee will consist of civilian experts from research institutions and universities. The media outlet confirmed that no representatives from the virtual asset sector will be included in this group, which means that none of the five exchanges that are members of the Digital Asset Exchange Association (DAXA) will participate.
The FSC has selected experts who have conducted extensive research on virtual assets from reputable institutions, such as the Capital Market Research Institute and the Financial Research Institute. This approach is expected to expedite discussions on launching spot Bitcoin ETFs.
It is worth noting that the FSC has delayed discussions on launching cryptocurrency ETFs several times this year, despite approvals for such funds in other countries. Initially scheduled for September, the meeting was postponed due to delays in forming the committee.
