The Financial Services Commission of South Korea (FSC) announced that the newly created cryptocurrency committee will reconsider the ban on local spot cryptocurrency ETFs. In a report presented at the annual audit, the FSC indicated that this committee, as a new advisory group on digital assets, will explore the possibility of lifting the current ban.
This may indicate a softening of the regulator's stance, which was previously strongly opposed to including digital assets in traditional financial markets. It is worth noting that in January, the U.S. approved spot Bitcoin ETFs, although this did not affect the FSC's initial decision to maintain the ban due to potential risks to financial stability.
Political forces in the country, both ruling and opposition, are pushing for rule changes. The left-wing government, which won the elections, stated back in May its intention to ask the FSC to review the existing ban.