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. This call was made during a New Year's news conference at Kofia's Seoul headquarters on January 1st, 2023.
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. 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.
Seo also believes that crypto ETFs could provide a testing ground for millennials before they invest directly in virtual assets. He 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."
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."