Ruling Party Proposes ‘Virtual Asset ETF Act,’ Clearing Asset Managers to Invest in Crypto

A bill to officially recognize virtual assets as an investment option was recently introduced in the c. Proposed by Representative| Jung Sung-Kook of the People Power Party, this amendment aims to allow asset management companies to issue and trade virtual assets such as Bitcoin and Ethereum in the form of ETFs. Until now, Korea’s financial authorities have strictly limited financial institutions from investing in virtual assets due to concerns over extreme volatility. However, following the launch of former U.S. President Donald Trump’s second administration and the subsequent rapid inflow of global funds into virtual asset derivatives markets, Korea is now moving to keep pace with these developments.

Both the ruling and opposition parties are pursuing active policies regarding virtual assets. With the possibility of an early presidential election being mentioned, virtual assets have become a key issue in attracting support from younger voters and individual investors. The Democratic Party is considering plans to incorporate Bitcoin into the country’s foreign exchange reserves and promote stablecoins, while the People Power Party has announced its intention to ease regulations on virtual assets and introduce spot ETFs.

Representative Jung insists that evaluating virtual assets through market forces will naturally phase out less competitive coins. He also expects that offering virtual assets as ETFs under the Capital Markets Act would bolster investor protection. Observers note that if Korea aligns its domestic regulations with global trends, it may minimize the side effects that financial authorities have been concerned about while further revitalizing the virtual asset market.

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