Korea’s Virtual Asset Committee to Discuss Spot ETFs and Corporate Investments

• Korea’s Virtual Asset Committee will discuss spot ETFs and corporate investments in virtual assets.  
• The committee is part of the Financial Services Commission’s effort to balance protection and industry growth.  
• The committee will review the second stage of legislation for virtual asset issuance and listing.

The Financial Services Commission of South Korea will establish a Virtual Asset Committee as early as this month, with its first meeting expected to take place shortly thereafter. The committee is tasked with addressing major concerns in the country’s crypto market, including the approval of virtual asset spot exchange-traded funds (ETFs) and allowing corporate investments in virtual assets. 

The Virtual Asset Committee will serve as an advisory body under the Financial Services Commission, following the Virtual Asset User Protection Act, which came into force in July. 

The committee, to be chaired by Financial Services Commission Vice Chairperson Kim So-young, will consist of 15 members. These include six government officials from key ministries such as Finance, Justice, and Science, along with nine civilian members from the private sector. 

The committee is expected to discuss the potential approval of virtual asset spot ETFs, a step that would align South Korea’s regulatory landscape with that of the United States, where spot Bitcoin and Ethereum ETFs are already available. Despite the rising global trend, spot ETFs remain unavailable in South Korea, sparking industry calls for regulatory reforms. 

Additionally, the committee will review whether to allow companies to open corporate accounts for virtual asset investments. Currently, South Korean companies face restrictions on virtual asset transactions, forcing them to rely on indirect methods such as over-the-counter trading.

Moreover, the committee will oversee the second stage of legislative development, building on the groundwork laid by the Virtual Asset User Protection Act.

While the first stage focused on regulating virtual asset operators, the second stage will address more complex issues such as virtual asset issuance and listing. This effort will take into account both market dynamics and international regulatory trends.

During a recent audit of the State Affairs Committee, Financial Services Commission Chairman Kim Byung-hwan emphasized the need for balanced growth in the industry.

He stated that the committee’s role would be to ensure that both regulation and industrial development proceed hand-in-hand, enhancing South Korea’s position in the global virtual asset space.

The launch of the Virtual Asset Committee marks an important step in South Korea’s ongoing efforts to strengthen and modernize its virtual asset regulatory framework. Industry stakeholders and market participants are keenly awaiting the committee’s decisions, particularly regarding spot ETFs and corporate virtual asset investment.