The South Korean legislator proposes ETF bill to include virtual assets star-news.press/wp
Main meals:
- The draft law proposes to expand the Capital Markets Law in South Korea to include digital assets such as ETF assets.
- Trust companies can legalize and manage digital assets legally, according to clearer rules for delegation and custody.
- Some industry numbers warn that brokerage derivatives associated with digital assets require strict risk controls.
Min Bong Duke, a member of the South Korea Democratic Party, submitted a draft law on June 27 to amend the capital markets law, according to News1. The proposal would expand the basic assets of the investment funds traded to include digital assets such as bitcoin.
The amendment creates a legal framework that allows the appeal companies to retain and manage digital assets as a trust. It also defines the conditions for the default assets custody of registered service providers.
The legislator proposes a draft law to enable traded investment funds based on digital assets
The draft law is part of President Lee Jay Meong’s agenda to integrate digital assets into the financial system. A separate road map allows the Financial Services Committee for institutional investors with more than 10 billion KRW in assets to trade virtual assets that start in late 2025.
Supporters say that the amendment provides a legal basis for traded investment funds based on digital assets and improves investor protection through clear rules on confidence management. It also includes measures to expand the derivatives market, allowing risk management strategies using digital assets.
The skeptics argue that the derived brokerage of digital assets requires strict management of risks. Some participants in this field say that companies that have sufficient capacity must be allowed to provide such products.
Currently, South Korea prohibits circulating investment funds that use digital assets as basic assets, forcing local investors to trade abroad or rely on unorganized markets. The new measure can create an organized path to participate in this market locally.
South Korea is moving forward amid global uncertainty
If approved, the amendment will allow asset managers to develop financial products related to digital assets, increase the diversity of the ETF market, and increase transparency and supervision in the sector. Min said that the bill will enhance growth while enhancing protection for Korean investors.
While the global organizers weigh the frameworks of the investment funds circulating in digital assets, many judicial states are still struggling with the basic questions about evaluation, custody and cross -border compliance. In the absence of uniform standards, the two countries often move at different speeds, which may lead to organizational arbitration and inconsistent protection for investors.
Industry observers say any transformation in ETF bases can affect broader discussions on digital asset taxes, reporting standards, and how digital financing fits national growth strategies.
Related questions (common questions)
Critics argue that derivatives associated with digital assets involve risks that companies that have sufficient controls must be managed.
While the United States has agreed to the investment funds circulating in Bitcoin and Ethereum, many countries still discuss the rules on custody, taxes and the protection of investors.
maybe. Analysts say ETF bases often intersect with tax policy, reporting standards and national digital financing strategies.
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2025-06-27 22:44:00
