Key Takeaways:
- A bill proposes expanding South Korea’s Capital Markets Act to include digital assets as underlying ETF assets.
- Trust companies could legally hold and manage digital assets, under clearer rules for delegation and custody.
- Some industry figures warn that brokering derivatives tied to digital assets requires rigorous risk controls.
Min Byung-deok, a member of South Korea Democratic Party, introduced a bill on June 27 to amend the Capital Markets Act, according to News1. The proposal would expand the scope of underlying assets for ETFs to include digital assets like Bitcoin.
The amendment establishes a legal framework allowing trust companies to hold and manage digital assets as trust property. It also outlines conditions for delegating custody of virtual assets to registered service providers.
Lawmaker Proposes Bill to Enable Digital Asset-Based ETFs
The bill is part of President Lee Jae-myung’s agenda to integrate digital assets into the financial system. A separate roadmap from the Financial Services Commission would permit institutional investors with more than KRW 10 billion in assets to trade virtual assets beginning in late 2025.
Supporters say the amendment provides a…
