South Korea is establishing a 15-member public-private committee to tackle key issues in the cryptocurrency space. The committee, expected to be launched later this month, will play a pivotal role in shaping regulations for virtual assets, including the approval of spot cryptocurrency exchange-traded funds (ETFs).

Committee Composition and Purpose

Led by the Financial Services Commission (FSC) vice chairman, the committee will comprise six government officials from agencies such as the Ministry of Finance and the Ministry of Justice. Nine additional members will come from the legal profession, academia, and the virtual asset industry. The committee’s main focus will be to evaluate South Korea’s spot crypto ETF plans and the possibility of allowing companies to open virtual asset accounts.

Spot Cryptocurrency ETF Plans Under Review

A significant agenda for the committee will be assessing the potential for launching spot cryptocurrency ETFs in South Korea. Spot ETFs, which track the price of cryptocurrencies in real time, would give investors a new way to gain exposure to the market. The committee will scrutinize the risks and benefits of such financial products.

South Korea’s regulatory body is also reviewing business renewal applications for crypto operators. Additionally, the FSC is revising the Specific Financial Information Act to improve the reporting system for virtual asset firms. These efforts aim to introduce clearer regulations for business operations, covering everything from issuance to disclosure and listing.

Gradual Introduction of Virtual Asset Regulations

As part of its broader efforts, the FSC is introducing the Virtual Asset User Protection Act, intended to build a robust legal framework for crypto businesses. This act will focus on ensuring consumer protection and enhancing transparency in the virtual asset market, laying the foundation for a stronger regulatory environment in South Korea.