A new South Korean regulatory body is set to launch this month, with a ruling on Bitcoin ETF approval reportedly high on its agenda. The tentatively named Virtual Assets Committee will operate under the umbrella of the Financial Services Commission (FSC). The media outlet reported that the body’s launch would help accelerate discussions on approving Bitcoin and Ethereum spot ETFs. Industry insiders also expect the committee to discuss allowing corporate virtual asset investment, with several South Korean companies hoping to enter the Bitcoin, Ethereum, and altcoin investment sectors.
Despite pressure from the industry and lawmakers, the FSC has delayed discussions on Bitcoin ETF approval. However, anonymous crypto industry insiders reported that the new committee is also set to talk about second-stage crypto legislation. The financial authorities plan to finalize the committee’s membership and hold a kickoff meeting before the end of October. The committee’s legal framework was established under the Virtual Asset User Protection Act which came into force in July. The FSC has already appointed its Vice Chair, Kim So-young, as the head of the new commission, with a further five regulatory or governmental officials set to join.
News1 noted that political and industry leaders have urged for corrective action as US-based firms launch Bitcoin ETFs and buy BTC. Last week, Financial Services Commission Chairman Kim Byung-hwan attended a National Assembly meeting where he discussed the new Virtual Asset Committee. Lawmaker Lee Kang-il from the opposition Democratic Party expressed concerns about the competitiveness of the domestic crypto market compared to international counterparts. However, Kim emphasized the need to balance investor protection and fostering crypto sector growth. He mentioned forming the Virtual Asset Committee with private sector experts to comprehensively address these concerns.
In response to accusations of favoritism towards Upbit and neglecting other domestic crypto exchanges, Financial Services Commission Chairman Kim Byung-hwan acknowledged the concerns and promised to investigate the matter. He highlighted the importance of balancing the protection of investors and stimulating growth in the crypto market. The regulatory body aims to address the inefficiencies in the system by forming the Virtual Asset Committee and involving private sector experts in the decision-making process. The committee will focus on various issues related to virtual assets, including approving Bitcoin and Ethereum spot ETFs, and enabling corporate virtual asset investment.
The FSC underlined its stance that no Bitcoin ETF decision would be made until the committee’s launch. The regulatory body plans to finalize the committee’s membership and conduct a kickoff meeting by the end of the month. The committee will consist of 15 members, with five officials from different ministries and nine members from the private sector. The Virtual Assets Committee was established under the Virtual Asset User Protection Act, signifying a significant step in regulating virtual assets in South Korea. The launch of this committee marks a pivotal moment for the crypto industry in South Korea, with the potential for more companies to enter the market and invest in virtual assets like Bitcoin and Ethereum.
