Future

Bitcoin

<ul class="wp-block-list">
 <li>The Korean SEC's move to discuss Bitcoin spot ETFs and corporate accounts is bullish, potentially reducing the Kimchi Premium.</li>  
 <li>South Korea's virtual asset committee will address Bitcoin ETFs, and corporate crypto accounts, and strengthen investor protections.</li>  
 <li>The Korea Premium Index reflected sharp Bitcoin price movements, highlighting opportunities for arbitrage as regulations evolve.</li> 
</ul>  
<p>The Korean Financial Services Commission has established a virtual asset committee to explore the approval of Bitcoin spot exchange-traded funds. The FSC will also discuss the allowance of corporate accounts for crypto exchanges. This move, <a href="https://www.digitalasset.works/news/articleView.html?idxno=22316" target="_blank" rel="noopener noreferrer nofollow">announced</a> on October 10, reflects South Korea's growing interest in the digital asset market.&nbsp;</p>  
<p>Besides, it signals a bullish outlook for Bitcoin as the committee’s decisions could mitigate the notorious "Kimchi Premium." This premium refers to the price difference of <a href="https://cryptonewsland.com/more-costa-rican-shops-are-embracing-bitcoin-for-payments/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin in Korean exchanges</a> compared to global markets. Arbitrage funds and market makers are expected to enter the Korean market, narrowing the price gap.</p>  
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<h2 class="wp-block-heading" id="h-focus-on-bitcoin-etfs-and-corporate-accounts">Focus on Bitcoin ETFs and Corporate Accounts</h2>  
<p>The FSC emphasized that, under current regulations, trading Bitcoin ETFs remains prohibited due to the Capital Market Act, which does not recognize digital assets. However, the committee will examine potential regulatory changes, focusing on the legal framework required to <a href="https://www.sec.gov/newsroom/speeches-statements/gensler-statement-spot-bitcoin-011023" target="_blank" rel="noopener noreferrer nofollow">approve </a>Bitcoin spot ETFs.&nbsp;</p>  
<p>Additionally, the committee will address the prohibition on corporate accounts for virtual asset trading, which has raised concerns over money laundering. The discussions are anticipated to bring more clarity to corporate participation in the crypto market.</p>  
<h2 class="wp-block-heading" id="h-virtual-asset-market-protections-and-future-legislation">Virtual Asset Market Protections and Future Legislation</h2>  
<p>The FSC's commitment extends beyond ETF approvals. The regulator has set up a non-profit foundation, the Digital Asset User Protection Foundation, to safeguard users' funds. This initiative is designed to protect investors from potential losses if businesses close or suspend operations. The FSC is also actively investigating market manipulation, seeking to tighten the monitoring system for abnormal trading and unfair practices.</p>  
<p>Furthermore, the FSC is focusing on implementing the Act on the <a href="https://cryptonewsland.com/bithumb-announces-launch-of-icp-korean-won-trading-market-amid-regulatory-changes/" target="_blank" rel="noopener noreferrer nofollow">Protection of Virtual Asset Users</a>. This act will regulate the cryptocurrency market and enforce fair trading. The committee plans to gradually review additional institutional improvements, including a second stage of legislation targeting business operations.</p>  
<h2 class="wp-block-heading" id="h-bitcoin-price-and-korea-premium-index-trends">Bitcoin Price and Korea Premium Index Trends</h2>  
<p>From 2020 to 2024, the Korea Premium Index fluctuated, reflecting shifts in Bitcoin's market price. During early 2021, the Korea Premium Index spiked to 20, mirroring Bitcoin’s surge toward $60K. However, as Bitcoin’s price fell below $30K by mid-2021, the premium dropped and briefly turned negative.</p>   
<p>The post <a href="https://cryptonewsland.com/korean-sec-forms-virtual-asset-committee-to-discuss-bitcoin-etfs/" rel="noopener noreferrer nofollow">Korean SEC Forms Virtual Asset Committee to Discuss Bitcoin ETFs</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Korean SEC Forms Virtual Asset Committee to Discuss Bitcoin ETFs

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