As South Korea moves closer to a decision on Bitcoin exchange-traded funds (ETFs), the nation is reportedly looking to Japan’s regulatory experience for guidance. The Maeil Business Newspaper has reported that South Korea’s financial regulators are closely studying Japan’s framework for digital assets as they work on their own regulations.
What Can South Korea Learn from Japan?
The South Korean Financial Supervisory Service is examining the updates from Japan’s Financial Services Agency, specifically regarding legislative modifications related to digital assets. Japan’s discussions focus on classifying digital assets similarly to securities while also relaxing rules surrounding Bitcoin ETFs. This review is anticipated to conclude in early 2025, with recommendations to be presented to legislative authorities by 2026.
How Are Political Factors Influencing Regulations?
In the midst of these regulatory advancements, South Korea’s government is also contending with a politically charged environment. A substantial number of citizens have invested in digital assets, leading to increased scrutiny of government efforts in this area. Furthermore, new regulations that allow educational institutions and charities to convert crypto donations into cash are expected to come into effect in the latter half of 2025.
Kim So-young, Vice Chair of the Financial Services Commission, has assured that South Korea will conduct a thorough review of its regulatory steps and aims to synchronize its approach with that of other nations, acknowledging that some countries have yet to adopt similar frameworks.
As regulatory bodies closely watch the cryptocurrency landscape, stringent domestic regulations have prompted major exchanges like Upbit to face penalties and legal challenges, ensuring compliance with customer identification processes.
- South Korea is studying Japan’s regulatory framework for Bitcoin ETFs.
- Regulatory reviews are expected to yield recommendations by 2026.
- Political scrutiny is heightened due to public investment in digital assets.
- New regulations for crypto donations will be implemented in late 2025.
These initiatives reflect a broader trend of regulatory development in the cryptocurrency sector, aimed at addressing market uncertainties and fostering greater confidence among participants.
