Bitcoin ETF momentum builds in South Korea as regulation lags behind

With trading-hour extensions and digital finance upgrades underway, Korea Exchange is positioning for crypto ETFs while approvals remain stalled.

South Korea’s securities and derivatives exchange operator, Korea Exchange (KRX), plans to increase its new investment products, including crypto exchange-traded funds (ETFs) and derivatives, as part of a broader push to modernize capital markets. 

Speaking at the first trading day ceremony of the new year, KRX chairman Jeong Eun-bo signaled the exchange was operationally prepared to support crypto ETFs, even as regulators continued to deliberate whether such products could be approved under existing securities regulations. 

Jeong framed the move as part of South Korea’s efforts to move beyond the “Korea discount,” a phenomenon where domestic stocks trade at lower valuations than global peers. The dynamic is different in crypto, where Bitcoin often trades at a premium on local exchanges compared with overseas platforms.

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