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The South Korean Stock Exchange’s chairman, Jeong Eun-bo, has emphasized how urgently the country must institutionalize its bitcoin industry. He cautioned that if there are any delays, the country may fall behind other countries that have already put in place extensive laws.
In a recent interview with South Korean media outlet Maeil Kyungjae, Eun-bo highlighted the importance of treating virtual assets on par with traditional financial products. He argued that regulatory clarity is essential for fostering a competitive edge in the global crypto space.
“If we are vague with our treatment of virtual currency and treat it as a speculative asset, we will fall behind in terms of international competitiveness,” he stated. Eun-bo emphasized that the global adoption of cryptocurrencies has grown so rapidly that the virtual currency market now surpasses South Korea’s domestic stock market in trading volume.
To illustrate, Eun-bo noted, “The average daily trading volume of the domestic stock market is approximately 20 trillion won ($13.9 billion). But the virtual currency market has surpassed this since Donald Trump was elected as U.S. President.”
Despite the growing importance of cryptocurrencies, South Korea’s regulatory environment remains restrictive. Currently, no cryptocurrency firms are listed on the South Korean Stock Exchange, and local businesses are not permitted to include crypto investments on their balance sheets. Moreover, the government has yet to approve Bitcoin spot exchange-traded funds (ETFs), further hindering institutional crypto adoption.
Some financial industry insiders have criticized these inconsistencies. They pointed out that banning Bitcoin spot ETFs while allowing leveraged trading for conventional ETFs “makes no sense from an investor protection standpoint.”
Eun-bo’s remarks followed his attendance at the World Exchange Market Summit, where discussions on crypto-related issues were prominent. He urged South Korea to take decisive action, noting that other nations have already embraced virtual assets and established regulatory frameworks to ensure fair competition.