South Korea’s Korea Exchange (KRX) plans to introduce new investment products like crypto ETFs and derivatives to modernize capital markets. KRX chairman Jeong Eun-bo expressed readiness to support crypto ETFs, aiming to move beyond the “Korea discount” phenomenon in stocks. The exchange also highlighted a shift towards 24-hour trading and digital finance readiness.

Regulators in South Korea are reviewing the legal status of crypto-based investment products. Current rules do not classify crypto assets as eligible underlying assets for securities, hindering the approval of crypto-based ETFs despite rising demand. The Financial Services Commission is studying reforms to potentially recognize digital assets under the Capital Markets Act framework.

Support for crypto ETFs has been growing in South Korea’s financial and political sectors. The Korea Financial Investment Association aims to list Bitcoin and Ether ETFs domestically, and in May, Lee Jae-myung, the Democratic Party’s presidential winner, pledged to approve spot crypto ETFs if elected. Despite this momentum, regulatory approvals for crypto ETFs remain pending.

Read more at Cointelegraph: Bitcoin ETF Momentum Builds in South Korea but Regulation Lags Behind