At the confirmation hearing in the Political Affairs Committee of the National Assembly of South Korea, Kim Byung-hwan noted that many local legislators insist on the appearance of cryptocurrency ETFs in the state.
In May, the Democratic Party of the country has already demanded to lift the ban on the creation of spot ETFs for bitcoin. However, Byung Hwang advocated a more circumspect approach. He suggested that we first look at the results of the United States, which has already approved these investment products.
"I am cautious about the issue of launching cryptocurrency accounts for corporations and institutions. Given the confusion that we have previously observed in the crypto market, our current policy should focus specifically on protecting investors, and not on developing the digital asset market. We need to maintain order in the market and financial stability, so it is worth reviewing the rules of operation of virtual asset operators," said Kim Byung-hwan.
He added that virtual assets cannot be considered currencies or financial products. Digital assets that are arbitrarily issued by the private sector will not be able to completely replace the money issued by the central bank, the politician is sure.
Recently, Bo-mi Lee, a researcher at the Korean Institute of Finance, also opposed the launch of cryptocurrency ETFs in South Korea. He fears that bitcoin ETFs will lead to inefficient allocation of resources and worsen the liquidity of the financial market.