The chairman of South Korea’s stock exchange, Jeong Eun-bo, has called for urgent action to “institutionalize crypto”, warning that delays could cause South Korea to fall behind international rivals in the rapidly evolving financial landscape.
In an interview with the South Korean newspaper Maeil Kyungjae, Jeong emphasized the need for regulatory clarity and integration of crypto into the nation’s financial system.
“The crypto asset market has grown in size and influence to the point where traditional markets cannot ignore it. South Korea should quickly make efforts to include crypto assets in the financial sector.”
— Jeong Eun-bo, Chairman, Korea Exchange
A Call for Swift Action: Institutionalizing Crypto
Jeong revealed that crypto regulation was a key topic at the recent World Exchange Market (WFE) Summit, where global exchange leaders expressed concerns about remaining profitable while ignoring the virtual currency market.
“The average daily trading volume of the domestic stock market is approximately 20 trillion won (around $14 billion). But the virtual currency market has surpassed this since Donald Trump was elected as US President,” Jeong stated.
He argued that integrating crypto into the traditional financial sector could create “new added value”, urging South Korea to “move beyond vague definitions of virtual currency as a speculative asset.”
South Korea’s Unique Crypto Market
South Korea’s crypto market has grown significantly, but it remains heavily dominated by private investors, with no crypto-focused firms listed on the Korea Exchange (KRX).
Key challenges include:
- Regulatory hurdles: Crypto firms cannot yet buy digital assets using their balance sheets.
- Lack of investment vehicles: South Korea has yet to approve Bitcoin spot ETFs, despite allowing leveraged trading for conventional ETFs.
Some financial experts argue that this discrepancy undermines “investor protection” and highlights the need for balanced crypto regulations.
Global Pressure and Competitive Risks
Jeong stressed that failure to institutionalize crypto would jeopardize South Korea’s international competitiveness, especially as other countries, such as the United States and Europe, push forward with crypto regulation and integration.
“If we are vague with our treatment of virtual currency and treat it as a speculative asset, we will fall behind in terms of international competitiveness,” Jeong warned.
A Vision for the Future
Jeong’s remarks reflect his deep expertise in economics and finance. A graduate of Seoul National University, he holds a PhD in Economics from Ohio State University and assumed the role of Korea Exchange chairman in February 2024.
Under his leadership, Jeong aims to modernize South Korea’s financial system by incorporating blockchain technology and digital assets, paving the way for greater innovation and growth.
Conclusion: The Road Ahead
As South Korea grapples with the challenges and opportunities presented by the crypto revolution, leaders like Jeong Eun-bo are urging swift action to institutionalize the market. By embracing crypto as a legitimate asset class, South Korea can enhance its financial sector’s competitiveness and establish itself as a global leader in blockchain and cryptocurrency innovation.
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