Concerns Raised by CryptoQuant CEO on South Korea’s Approval of Bitcoin ETFs
CryptoQuant CEO Ki Young Ju has expressed doubts about South Korea’s preparedness to approve spot Bitcoin exchange-traded funds (ETFs). In a recent post on X (formerly Twitter), Ju drew parallels between the regulatory environment in South Korea and the cautious approach taken by US Securities and Exchange Commission (SEC) Chair Gary Gensler, hinting that this could potentially delay the approval of ETFs.
Regulatory Climate in South Korea
- South Korea’s Financial Services Commission (FSC) has been rejecting ETFs linked to digital assets, indicating a more restrictive approach.
- This stance has raised concerns about the future of the regulatory framework in the absence of significant leadership changes.
Comments by Ki Young Ju
“I’m very skeptical it will move forward until the regime changes and the head of the Korean SEC is replaced. We’re in a Gary Gensler situation.”
Comparison to Gary Gensler’s Approach
Gensler, known for his strict oversight of digital assets, has faced criticism for his regulatory stance. Despite initial resistance, the SEC eventually approved spot Bitcoin ETFs in January 2024 under Gensler’s leadership. He is expected to step down as SEC Chair in January 2025.
Criticism of South Korea’s Bitcoin Approach
- CryptoQuant CEO highlighted South Korea’s unfriendly stance towards Bitcoin, suggesting that it poses legal challenges for industry figures like Michael Saylor.
- The lack of understanding among South Korea’s leaders, including the president, the FSC, and the Korean IRS, complicates the regulatory landscape for cryptocurrencies.
Despite the government’s cautious approach, South Korean citizens remain active participants in the crypto market, with local exchanges like Upbit experiencing high trading volumes, showcasing a strong interest in digital assets.
The comparison made by CryptoQuant CEO between South Korea’s Bitcoin stance and the ‘Gary Gensler situation’ underscores the challenges faced in gaining approval for Bitcoin ETFs in the country.
