{"id":82270,"date":"2024-06-24T04:39:35","date_gmt":"2024-06-24T08:39:35","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=82270"},"modified":"2024-06-24T04:39:38","modified_gmt":"2024-06-24T08:39:38","slug":"south-korean-think-tank-calls-for-more-research-on-crypto-etfs","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/south-korean-think-tank-calls-for-more-research-on-crypto-etfs\/","title":{"rendered":"South Korean Think Tank Calls for More Research on Crypto ETFs"},"content":{"rendered":"\n

A finance and economics-focused think tank in South Korea cautions users against spot crypto ETFs<\/a>, calling for more research and regulatory measures.<\/p>\n\n\n\n

\"South
South Korean Think Tank Calls for More Research on Crypto ETFs<\/figcaption><\/figure>\n\n\n\n

In a paper, researcher Bo-mi Lee of the Korea Institute of Finance contended that the losses in spot Bitcoin and Ether ETF results in various jurisdictions worldwide outweigh the benefits.<\/p>\n\n\n\n

Spot crypto ETFs may contribute to financial instability<\/h2>\n\n\n\n

The researcher contended that introducing spot crypto ETFs in the country could harm its financial stability. As per the paper, A substantial amount of capital will be directed into the crypto market when the spot ETFs are approved and digital asset prices increase.<\/p>\n\n\n\n

Lee contended that this would lead to inefficiencies in resource allocation. The researcher also observed that the health of financial companies and the liquidity of the financial market<\/a> will deteriorate as prices decrease.<\/p>\n\n\n\n

The researcher stated that the country must conduct additional research to determine the potential benefits and drawbacks of introducing spot crypto ETFs in light of these factors. The researcher maintains that the negative consequences will surpass the possible advantages.<\/p>\n\n\n\n

Lee also stated that the value of digital assets still needs to be better understood, and the assets are characterized by high volatility. The researcher contended that introducing such products would induce market participants to perceive them as “proven assets.”<\/p>\n\n\n\n

Additionally, Lee stated that there would be an increase in the associated hazards. According to the researcher, regulatory measures must be adequately prepared to mitigate these hazards. <\/p>\n\n\n\n

Lee also stated that the financial market and investors still need to be more responsive to the impact of digital assets. Regions must implement adequate safeguards before setting up spot crypto exchange-traded funds (ETFs).<\/p>\n\n\n\n

Exchanges evaluate token listings in South Korea<\/h2>\n\n\n\n

South Korea's financial regulator\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> is implementing more stringent regulations regarding cryptocurrency assets to safeguard consumers. Regulative evaluations of tokens listed on registered crypto exchanges in the country will be mandatory beginning on July 19.<\/p>\n\n\n\n

The exchanges must determine whether to continue supporting or delisting the tokens on their platform. The new law mandates that all registered exchanges review the over 600 listed crypto assets.<\/p>\n\n\n\n

Individuals who have failed to adhere to the regulations will be subject to stringent penalties, such as jail sentences and fines.<\/p>\n","protected":false},"excerpt":{"rendered":"

A finance and economics-focused think tank in South Korea cautions users against spot crypto ETFs, calling for more research and regulatory measures. In a paper, researcher Bo-mi Lee of the Korea Institute of Finance contended that the losses in spot Bitcoin and Ether ETF results in various jurisdictions worldwide outweigh the benefits. Spot crypto ETFs […]<\/p>\n","protected":false},"author":12,"featured_media":82272,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[12924,1712,1841],"class_list":["post-82270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto-etfs","tag-south-korea","tag-think-tank"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/06\/image-104.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/82270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=82270"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/82270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/82272"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=82270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=82270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=82270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}