Will This Development Ignite Bitcoin and Altcoins: Positive News May Soon Arrive from South Korea

In South Korea, an important regulatory process is beginning to take place in regulating the cryptocurrency market. In February, substantive legislative discussions about cryptocurrency spot ETFs will begin with the South Korean National Assembly on crypto spot etymology.

The discussions will focus on draft amendments to the Capital Markets Law that would provide a legal framework for local financial institutions to issue and list crypto spot ETFs on exchanges.

It is also gaining strong support from the regulatory side of the process for . Earlier this month the Financial Services Commission (FSC) has announced its support for such changes and will implement the necessary regulatory reforms in conjunction with the legislative work.

In today’s announcement of the South Korean government’ in its “2026 Economic Growth Strategy” it laid out a comprehensive plan for institutionalization of digital assets. With this strategy, cryptocurrency policies that have been largely addressed within a regulatory framework seem to be shifting towards “recognizing institutional rights” and “promoting the sector”. , ” and.

But the most notable part of this plan is implementation of crypto spot ETFs, which has long been a market favorite for Crypto spoter to be implemented. The government is hoping to introduce spot ETFs for large crypto assets, primarily Bitcoin. By increasing transaction ease, it is likely that this step will accelerate the entry of institutional investors into the market.

The development marks the first concrete step of South Korea almost two years since US SEC approved Bitcoin spot ETFs. It could also attract institutional investors like pension funds and large corporations, market experts say, according to market analysts.

Stablecoin regulation is another key country’s agenda for a critical topic, . A stablecoin regulatory system, which is central to the planned “two-stage legislative” process for virtual assets, will be finalized in the first quarter of this year. stablecoin issuances will be issued under an authorization system, according to which only companies with sufficient capital strength will have the right of entry into the market.

If issued stablecoins are required to be supported by more than 100% secured reserve assets, they will need to prevent a repeat of previous collapses in order to avoid further repetition. In addition, refund rights for users will be protected legally from users’ right to claim the refunds of their respective phrases. Also, the government plans to expand its use of blockchain-based commerce and international money transfers through regulations aimed at cross-border transfers and transactions of stablecoins.

*This is not investment advice.

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