South Korea’s Top Financial Leader Urges Approval for Crypto ETFs—What’s at Stake?

Korea Financial Investment Association (Kofia) Chairman Seo Yoo-seok has called for the approval of cryptocurrency spot exchange-traded funds (ETFs) and the formal recognition of security tokens.

During a recent New Year’s news conference at Kofia’s Seoul headquarters, Seo highlighted the potential growth of the virtual asset market, influenced by U.S. President Donald Trump’s pro-crypto policies. He suggested that Korea must act swiftly to maintain a competitive position in the global crypto landscape.

Reason Behind The Crypto ETF Push

The US Securities and Exchange Commission (SEC) approved Bitcoin and Ethereum spot ETFs last year, leading to a wave of similar products from major asset managers.

Kofia Chairman Seo Yoo-seok argued that Korea should follow suit, ensuring the country is not left behind. According to Seo, these financial instruments could “enhance market transparency, broaden institutional participation, and solidify Korea’s role” as a leader in digital asset adoption.

Meanwhile, another reason why Seo urges the approval of cryptocurrency ETFs is also to give millennials a testing ground before they dive fully into virtual assets. During the conference, the Kofia Chaiman said:

Everyone thinks of virtual assets as an investment target for the MZ generation (Millennials + Generation Z), but people in their 50s and 60s also have a lot of interest in and demand for virtual assets. Their funds are larger than those of the MZ generation, but I wonder if it’s right to let them go straight to virtual assets. That’s why I think we need to list an ETF that is recognized worldwide, at least based on Bitcoin and Ethereum, in our market so that investors can invest comfortably and with peace of mind.

The Push for Regulatory Advancement

Furthermore, Seo’s call for cryptocurrency ETFs aligns with a broader push to institutionalize security tokens in Korea. Kofia plans to engage with financial regulators this year, advocating for the inclusion of Bitcoin and Ethereum spot ETFs within the nation’s financial framework.

By doing so, Korea could attract greater institutional investment, enhance liquidity, and promote a more “robust digital asset ecosystem.” According to a local news media, Seo stated:

The inauguration of the second Trump administration is expected to further boost global virtual asset market-related businesses. To ensure that Korea keeps up with the trend, I will continue to support the institutionalization of security tokens and push for the approval of virtual asset ETFs.

In addition to crypto initiatives, Seo reaffirmed Kofia’s commitment to the government-led “Value-up” program. Introduced last year, this policy aims to address the perceived undervaluation of domestic stocks, known as the “Korea discount.”

Seo described it as a comprehensive effort to promote qualitative economic growth, strengthen the financial market, and expand citizens’ financial assets. He called for collaboration between the government, the National Assembly, and the private sector to ensure the program’s success.

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