Local media has reported that a South Korean exchange is waiting for regulators in the United States to make a ruling regarding the highly anticipated Vaneck exchange-traded fund () before determining its stance pertaining to virtual currency ETFs.
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Exchange Awaits US Ruling to Develop ETF Policy
A report published by The Korea Herald has asserted that officials at a South Korean exchange are waiting for United States lawmakers to establish a precedent regarding ETFs. The report quotes an anonymous source claiming to work as an official at South Korea’s main bourse operator, Korea Exchange.
The source that “The US has been the front-runner on the market and related derivatives,” noting that despite “strong voices supporting the launch of ETFs within the market,” they are “observing the progress and response of the U.S. Securities and Exchange Commission’s decision on ETFs.”
The source also stated that the launch of ETFs would require “a solid index, adding that the prospective index is “being discussed expansively at [The Korea Exchange] because it would eventually concern investor protection issues.”
Permissive Korea Exchange’s Policies for bitcoin ETF Likely to Be Accompanied by Strict KYC Guidelines
Lee Kyung-ho, a professor at Korea University’s Graduate School of Information Security, described the Korea Exchange’s framework as intended to “minimize the risk of integrating transactions” in South Korea’s sector.
The professor emphasized that a permissive framework pertaining to ETFs would require strict know-your-customer (KYC) and anti-money laundering (AML) procedures, stating that “The government has been requesting exchanges to adopt what is known as the rules of KYC and AML to boost transparency in transactions.”
Lee also asserted that South Korea’s government has recently been expanding its investments into the “research and development of technology.”
When do you think the industry will see an receive regulatory approval? Share your thoughts in the comments section below!
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Published at Sat, 23 Feb 2019 22:44:54 +0000
