South Korea Explores Crypto Spot ETFs and Security Token Sales
South Korea is looking into introducing ‘crypto’ spot ETFs and security token sales, in an effort to reignite investor interest after a turbulent year of political instability. The Korea Exchange (KRX), the country’s primary stock exchange, is contemplating the addition of digital asset spot exchange-traded funds to its lineup, following similar moves by other nations like the US, Thailand, and Hong Kong.
Amidst political shakeups and declining trading activity at KRX, Jeong Eun-bo, the chairman of the exchange, emphasized the need to explore new business avenues like ETFs to attract investors back to Asia’s sixth largest stock exchange. This shift in strategy would mark a departure from South Korea’s historically cautious approach to digital asset ETFs.
Furthermore, there are discussions about potentially approving security token offerings (STOs) in South Korea. Kim Byung-hwan, the Chair of the Financial Services Commission (FSC), mentioned the authority’s consideration of STOs to diversify the securities issuance system and encouraged collaboration between the government, parliament, and corporate investors to revitalize the market.
Despite facing challenges such as pending digital asset taxation legislation, South Korea remains a significant player in the global digital asset market, with over six million South Koreans actively trading digital assets.
Meanwhile, in the US, Morgan Stanley is exploring the addition of digital assets to its E*TRADE online brokerage platform. Anticipating a surge in digital asset investment with Donald Trump’s presidency, Morgan Stanley sees an opportunity to capitalize on the growing popularity of cryptocurrencies. E*TRADE, which was acquired by Morgan Stanley in 2020, may soon allow clients to directly buy, sell, and store digital assets, competing with established players like Robinhood and Coinbase.
Both South Korea and the US are embracing the potential of digital assets and considering new ways to incorporate them into traditional financial systems, signaling a broader trend of innovation and expansion in the global finance sector.
