South Korea Delays Cryptocurrency Reforms Amid Regulatory Uncertainty; BTC ETF Plans Remain Elusive

The Individuals Energy Occasion in South Korea has opted to postpone its efforts to ease cryptocurrency rules indefinitely, signaling a setback for market watchers anticipating the lifting of the ban on home spot Bitcoin exchange-traded funds (ETFs). This determination, as revealed by native media, underscores the challenges in reaching consensus with governmental and monetary entities relating to the framework for cryptocurrency insurance policies.

Proposals inside the get together to delay the taxation on digital property for an extra two years and to allow company investments in digital property did not progress past preliminary discussions. Issues over potential monetary ramifications, significantly relating to company involvement within the cryptocurrency market, and the absence of intensive consultations with related governmental ministries contributed to the shelving of those initiatives.

Earlier indications this month steered that the Individuals Energy Occasion was poised to unveil important coverage modifications relating to crypto taxation deferral and institutional cryptocurrency investments. Nonetheless, the get together’s retreat from these proposals highlights the complexities of aligning coverage agendas with broader regulatory and financial issues amid the quickly evolving digital asset panorama.

Conversely, the opposition Democratic Occasion has solid forward with outlining its cryptocurrency coverage goals, showcasing a transparent coverage divergence between the 2 main political factions forward of the upcoming normal election slated for April 10.

In January, South Korea’s monetary regulator reiterated its stance in opposition to monetary establishments issuing cryptocurrency ETFs, citing the discrepancy between digital property and conventional definitions outlined within the Capital Markets Act.

Whereas this regulatory atmosphere continues to limit native traders’ entry to identify crypto ETFs, entry to overseas crypto futures merchandise stays unaffected.

The Monetary Supervisory Service (FSS) of South Korea is actively pursuing alignment with worldwide requirements on cryptocurrency regulation, significantly specializing in the intricacies of spot Bitcoin ETFs. Underneath the management of Chief Lee Bok-hyun, the FSS plans to interact in strategic discussions with the US Securities and Trade Fee (SEC) to realize insights and steerage on the regulatory framework for spot Bitcoin ETFs.

As a part of its 2024 enterprise technique, the FSS intends to convene conferences in main monetary hubs, together with New York, to delve into discussions about South Korea’s stance on cryptocurrency regulation and the potential recognition of non-fungible tokens (NFTs) as digital property.

The worth of the CANDY token plummeted by over 95% to $0.0068 following studies of the community initiator’s switch of 753.11 Ether to a pockets related to the OKX trade. The transaction, recorded on Etherscan on Mar. 6, coincided with Lena Community’s announcement of transferring the token contract’s possession rights, sparking considerations in regards to the undertaking’s future improvement. Regardless of denying allegations of an exit rip-off, Lena Community emphasised its dedication to transparency and stability, highlighting efforts to bolster the liquidity pool and lock CANDY’s liquidity pool to revive confidence within the ecosystem.