South Korea wants a crypto market revival

South Korea is pushing forward to revive its cryptocurrency market, presenting an exchange-traded funds (ETF) roadmap and stablecoin plans. In the major development, the country intends to move away from its past crypto policies and enter into a new era. According to reports, South Korea intends to bring spot crypto ETFs and stablecoin into the heart of its financial system, releasing a proposal to that effect this week. The proposal, submitted by the country’s top regulator, the Financial Services Commission (FSC), will see the government lay out detailed plans to regulate crypto investment products in the market before the end of this year. It also outlines the plan to introduce spot crypto exchange-traded funds to investors in the Asian country. South Korea pushes for crypto market revival The FSC presented the roadmap to the Presidential Committee on Policy Planning, which includes a framework for a legal and regulated framework for crypto ETFs. The move also represents a shift in the country, moving from a cautious stance to potentially adopting digital assets. Under the roadmap, the FSC is expected to prepare the legal and technical groundwork needed to make these proposals a reality. In addition, South Korea’s FSC is also expected to oversee the development of infrastructure that will cut across custody, operation, pricing, and fund management. The agency will also be charged with setting clear standards to protect investors. The decision to support crypto ETFs comes months after President Lee Jae-myung was elected. During his campaign, Lee promised to legalize crypto ETFs, promising investors that he would improve safeguards to protect them in the market. His pro-crypto stance marked a shift from the policies of the previous administration, which had banned crypto ETFs over concerns about the risks in the sector of the market. The move is also in line with South Korea’s goal of aligning with global financial trends, considering major markets like the United States and Europe are already doing well in the spot ETF market. The country also wants to keep attracting both retail and institutional investors, making the country one of the few global hubs for digital assets and other crypto-related financial products. FSC pushes stablecoin rules and market oversight In addition to providing spot ETFs, the roadmap also discussed cutting current trading fees, which are around 0.05%. President Lee intends to make the fees cheaper, with a reduction to about 0.015% being discussed. The focus is to ensure crypto trading remains affordable for the population, especially the younger traders who have been making strides in the industry. Outside of ETFs, the roadmap also includes a legal framework for stablecoins based on the Korean Won. These digital assets, pegged to fiat currencies, are used for payments and remittances while keeping capital within countries. According to the roadmap, the move could help reduce the reliance on stablecoins like USDT or USDC created abroad, allowing local firms to issue their stablecoins. Meanwhile, the Bank of Korea governor has mentioned that stablecoins should be developed by the central bank. The roadmap does not just focus on launching new products; the FSC also includes a push for stricter oversight. The commission has proposed stricter penalties for illegal market activities, including lifetime bans and fines for bad actors. The commission also mentioned that exchanges will face higher disclosure standards and will need to post transparent trading fees and listing rules. This area shows South Korea’s focus on protecting investors without stifling innovation. KEY Difference Wire : the secret tool crypto projects use to get guaranteed media coverage

Source: Cryptopolitan