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KOFIA Chair Seo Yu-seok Urge Authorities to Launch Bitcoin ETF

South Korea's financial association aggressively seeks Bitcoin and Ethereum ETF approval in 2025, driven by surging domestic interest and a shift in regulatory approach.

The Korea Financial Investment Association (KOFIA) has declared its intention to aggressively pursue the approval of cryptocurrency exchange-traded funds (ETFs) within the South Korean stock market in 2025.

KOFIA Chairman Seo Yoo-seok assertiveness reflects a broader shift in the nation’s approach to the cryptocurrency market, influenced significantly by the recent US presidential election and the subsequent surge in domestic interest.

Chairman Seo’s call for the introduction of Bitcoin and Ethereum-based ETFs highlights a perceived need to cater to a growing segment of the South Korean population investing in digital assets.

KOFIA Chair Urges for Bitcoin ETF

At the 2025 Press Corps New Year’s Meeting, Chairman Seo emphasized the rising interest in cryptocurrencies not only amongst the younger MZ generation (Millennials and Generation Z), but also within the older demographic.

He highlighted the significant financial resources held by this older population and argued that providing a regulated and accessible investment vehicle, such as an ETF, is crucial for safeguarding their investments and promoting responsible engagement with the cryptocurrency market.

Additionally, he noted that many countries have already successfully launched such products, contrasting this with South Korea’s previous cautious approach, largely attributed to the Financial Services Commission’s (FSC) lack of recognition of cryptocurrencies as investable assets under the Capital Markets Act.

Chairman Seo stated, “It’s even been suggested that a second Trump administration might designate Bitcoin a national strategic asset,” and “Bitcoin and Ethereum are underpinned by blockchain information technology; this is undeniable.” He added,

“That’s why I believe we should list a globally recognized ETF, at least based on Bitcoin and Ethereum, on our market, allowing investors to participate with confidence and peace of mind.”

Notably, the country has witnessed a dramatic 450% increase in new cryptocurrency exchange registrations since the election, with a surprising proportion of applicants aged 40 and above.

South Korea Impeding Market Challenges

South Korea’s cryptocurrency market faces unique challenges. Stringent anti-money laundering (AML) regulations mandate that exchanges partner with local banks to offer crypto-to-fiat services, a restriction that has severely limited participation by corporations and institutions.

Furthermore, the reliance on retail investors, coupled with the FSC’s previous reluctance to classify cryptocurrencies as securities, has hindered the development of crypto-backed ETFs.

The establishment of a virtual asset committee in October 2024 marks a significant step toward addressing these limitations. The committee’s ongoing review of corporate trading accounts and crypto ETFs suggests a willingness to adapt regulations in line with the evolving market dynamics.

The KOFIA’s proactive push for ETF approval, alongside the government’s reassessment of its regulatory framework, signals a potential turning point for South Korea’s cryptocurrency market, paving the way for more inclusive and regulated participation.

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