At a confirmation hearing at the Political Affairs Committee of the National Assembly of South Korea, Kim Byung-hwan noted that many local lawmakers are pushing for the introduction of cryptocurrency ETFs in the country.
In May, the country’s Democratic Party had already called for lifting the ban on spot ETFs on bitcoin. However, Byung-hwan advocated a more cautious approach. He suggested first looking at the results of the US, which has already approved these investment products.
“I am cautious about launching cryptocurrency accounts for corporations and institutions. Given the confusion we have seen in the crypto market before, our current policy should focus on protecting investors rather than developing the digital asset market. We need to maintain order in the market and financial stability, so it is worth reviewing the rules for virtual asset operators,” Kim Byung-hwan said.
He added that virtual assets cannot be considered currencies or financial products. Digital assets that are arbitrarily issued by the private sector will not be able to completely replace money issued by the central bank, the politician is sure.
Recently, Bo-mi Lee, a researcher at the Korea Institute of Finance, also spoke out against the launch of cryptocurrency ETFs in South Korea. He fears that Bitcoin ETFs will lead to inefficient resource allocation and worsen the liquidity of the financial market.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
