Jeong Eun-bo, Chairman of the South Korean Stock Exchange, has warned that South Korea risks falling behind other nations in the global crypto market unless it acts swiftly to institutionalize cryptocurrency.
Speaking in an interview with the South Korean media outlet Maeil Kyungjae, Eun-bo argued that crypto must be treated and regulated in a manner similar to traditional financial assets in order to overcome regulatory hurdles and remain competitive on the global stage.
Urgency for Crypto Regulation
Eun-bo emphasized the need for South Korea to establish clear, comprehensive regulations for the cryptocurrency market, warning that failure to do so could leave the country at a disadvantage. “If we treat virtual currencies as speculative assets and remain vague in our regulatory approach, we will lose our international competitiveness,” he stated.
He also pointed out the rapid growth of the global crypto market, which has already surpassed the domestic stock market in terms of daily trading volume. “The average daily trading volume of the South Korean stock market is about 20 trillion won ($13.9 billion), but the cryptocurrency market has already outpaced this, especially since the election of U.S. President Donald Trump,” Eun-bo noted.
Global Crypto Market Growth
Eun-bo’s comments reflect the growing momentum of the global cryptocurrency market. As countries like the U.S., Japan, and some European nations have developed clear frameworks for crypto, South Korea’s slow regulatory approach has raised concerns about losing its competitive edge. Many global markets have integrated crypto assets into their financial systems, while South Korea still grapples with defining the legal status of virtual assets.
At the same time, local regulations are still a barrier for South Korean companies. To date, no crypto firms are officially listed on the South Korean Stock Exchange, and local companies are not allowed to hold crypto assets on their balance sheets. Additionally, the South Korean government has yet to approve the launch of Bitcoin spot exchange-traded funds (ETFs), which have been widely adopted in other markets.
Regulatory Gaps in South Korea
Eun-bo’s remarks follow growing criticism within the South Korean financial sector regarding the government’s stance on crypto ETFs. Some financial insiders argue that banning Bitcoin spot ETFs—while allowing leveraged ETFs—does not make sense from an investor protection perspective. They contend that such inconsistent regulation could hinder investment opportunities and create confusion for market participants.
As of now, there is no clear timeline for when South Korea will roll out more comprehensive crypto regulations. In a recent development, the South Korean National Assembly decided to delay any major decisions regarding crypto-related regulations until mid-2025. This decision came amid political turmoil surrounding the impeachment of President Yoon Suk-yeol.
Political Context and Delayed Regulatory Progress
In addition to the ongoing regulatory debate, South Korea’s political crisis has also affected the country’s approach to crypto regulation. Following the impeachment of President Yoon due to his controversial martial law decree, the National Assembly voted to suspend his presidential powers. With Yoon’s future in limbo, the Constitutional Court now has up to six months to decide whether to uphold his impeachment or restore his presidency. This political uncertainty has further delayed any significant regulatory action on crypto, including the approval of Bitcoin spot ETFs.
Despite these challenges, Eun-bo remains hopeful that South Korea can still catch up with global trends in cryptocurrency regulation. He stressed that the country must act swiftly to institutionalize the crypto market, pointing to the rapid advancements made by other nations.
Conclusion
South Korea is at a crossroads in its approach to the cryptocurrency market. With global competition heating up, the country’s financial leaders, including Jeong Eun-bo, are calling for swift regulatory action to avoid being left behind. While political instability and regulatory delays have slowed progress, the urgency for clear and comprehensive crypto regulations remains high. As the global market for virtual assets continues to grow, South Korea’s ability to adapt could determine whether it remains a leader in the financial space or falls behind.
