The approval of a US Ethereum spot ETF has put pressure on South Korean regulators

South Korean regulators are facing pressure from the market to approve cryptocurrency exchange-traded funds (ETFs) after the Securities Exchange Commission (SEC) approved an Ethereum spot ETF. The decision is expected to force Seoul's financial regulator to revisit its stance on digital assets.
South Korea's Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have been cautious in introducing crypto-asset trading into traditional securities markets. According to the FSC, ETFs must strictly follow the capital markets law and can only be linked to traditional underlying assets. The South Korean government updated the Virtual Asset User Protection Act in early February.
And Xangle, a major digital currency data provider in Seoul, has publicly criticized the traditional securities market's ban on digital assets, calling it "outdated" and in need of revision. Jung Eui-jung, president of the Korea Shareholders' Union, stressed that Seoul should follow the US in approving Bitcoin and Ethereum ETFs to reduce industry frustration. He warned that if South Korea moves slowly and the US moves forward, investors may turn to the US market, and it is only a matter of time before the US fully opens its market for other cryptocurrencies.