South Korea might quickly comply with Hong Kong in legalizing spot Bitcoin exchange-traded funds (ETFs), because the nation’s high presidential candidates have expressed pro-crypto positions.

Nonetheless, some trade observers stay cautious concerning the chance of near-term regulatory change.

“All three major South Korean presidential candidates support #Bitcoin ETFs and institutional investment,” Ki Younger Ju, the founder and CEO of onchain knowledge platform CryptoQuant, wrote in a Could 14 X put up.

At present, Bitcoin ETFs and institutional crypto investments are banned in South Korea, which means that “100% [of the] volume comes from retail,” Ju added.

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On Could 6, South Korea’s Democratic Celebration chief Lee Jae-myung promised to legalize spot crypto ETFs, decrease transaction charges and “create a safe investment environment so that young people can [build] assets and plan for the future, according to a report from The Korean Economic Daily (KED).

The Democratic Party made similar promises in its 2024 election campaign, including the legalization of spot crypto ETFs, but progress has been delayed, KED reported.

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Candidates back ETFs, but history casts doubt

While the crypto-friendly perspectives of the leading candidates suggest a promising future for digital asset legislation in South Korea, regulation experts remain skeptical.

“The candidates’ pro-crypto pledges to push to legalize spot Bitcoin ETFs and reduce fees signal a potential shift. But history tempers optimism,” Anndy Lian, creator and intergovernmental blockchain adviser, advised Cointelegraph, including:

“They will take on similar stances as Hong Kong. Whether the ETFs can perform or not depends on various other factors.”

“A pro-crypto president could drive reform, aligning South Korea with global trends like the US, where Bitcoin ETFs have attracted over billions in net inflows,” Lian mentioned, including that the Monetary Providers Fee’s tone additionally advised “regulatory openness” for cryptocurrencies.

Nonetheless, the Individuals Energy Celebration, elected in 2022, additionally promised to elevate the crypto ETF ban and revise the controversial one-exchange-one-bank rule, “but failed to act before President Yoon’s impeachment,” Lian mentioned.

Over in Hong Kong, the primary batch of Bitcoin and Ether-based ETFs launched for buying and selling on April 30, 2024, however noticed disappointing buying and selling exercise in comparison with their US counterparts, Cointelegraph reported.

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