The head of South Korea’s stock exchange, Jeong Eun-bo, has stated that it’s time for the nation to “institutionalize crypto” and act swiftly. In an interview with the South Korean newspaper Maeil Kyungjae, he argued that the crypto market requires assistance to “overcome regulatory obstacles.” He emphasized that the cryptoasset market has grown in size and influence to a point where traditional markets can’t afford to ignore it. South Korea should make prompt efforts to incorporate cryptoassets into the financial sector.
Discussion at the WFE Summit
Jeong mentioned that at a recent World Exchange Market (WFE) summit, attendees “seriously discussed” crypto-related matters. Exchange chiefs agreed that it would be tough for stock exchanges to “maintain profitability” if they “ignored the virtual currency market.” He pointed out that the average daily trading volume of the domestic stock market is around 20 trillion won (about $14 billion), yet the virtual currency market has surpassed this since Donald Trump was elected as US President.
The Need for Urgency
Jeong urged that they must hurry to institutionalize the virtual currency market to create new added value. He warned that if South Korea is unclear in its treatment of virtual currency and simply views it as a speculative asset, it will lag behind in international competitiveness.
Characteristics of South Korea’s Crypto Market
The popularity of crypto in South Korea has soared in recent years. However, its crypto market has unique features. No crypto firms are listed on the Korea Exchange, and companies aren’t allowed to buy crypto with their balance sheets yet. Also, regulators haven’t approved the launch of Bitcoin spot ETFs. There are a few firms with minority holdings in crypto exchanges that are listed on the Korea Exchange, and most of these companies experience price volatility when Bitcoin prices fluctuate rapidly.
Perspective from Domestic Insiders
Some domestic financial industry insiders believe that allowing leveraged trading for conventional ETFs while maintaining a ban on Bitcoin spot ETFs doesn’t make sense from an “investor protection” standpoint.
About Jeong Eun-bo
Jeong is a graduate of Seoul National University and holds a PhD in Economics from Ohio State University. He became the Korea Exchange chairman in February 2024.
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