CryptoQuant CEO Ki Young Ju has raised concerns about South Korea’s readiness to approve spot Bitcoin exchange-traded funds (ETFs).

In a Nov. 26 post on X (formerly Twitter), Ju compared the regulatory climate in South Korea to the contentious stance of the US Securities and Exchange Commission (SEC) Chair Gary Gensler, suggesting that such an environment might delay ETF approval.

South Korea’s Financial Services Commission (FSC) has stepped up its restrictive policies by rejecting ETFs linked to digital assets. This approach has led to skepticism about the future of the current regulatory framework without a leadership overhaul.

Ju stated:

“I’m very skeptical it will move forward until the regime changes and the head of the Korean SEC is replaced. We’re in a Gary Gensler situation.”

Gensler, a polarizing figure in the crypto world, is known for his stringent approach to overseeing digital assets. Under his leadership, the SEC pursued legal action against major crypto firms, including Binance and Coinbase. A court also forced the agency to revisit its repeated rejection of spot Bitcoin ETFs before finally approving them in January 2024. Gensler is set to step down as SEC Chair on Jan. 20, 2025.

Slams South Korea’s Bitcoin approach

Meanwhile, Ju’s comments also included sharp criticism of South Korea’s broader approach to Bitcoin.

The CryptoQuant CEO suggested that a figure like MicroStrategy’s Michael Saylor would face severe legal challenges if he operated in South Korea due to the country’s unfriendly stance toward the top crypto.

He said:

“South Korea is not a Bitcoin-friendly country. It’s hard to encourage companies or the govt to adopt a Bitcoin treasury strategy when we don’t have politicians who truly understand Bitcoin.”

Ju noted the disconnect among South Korea’s leaders contributes to this challenging environment. He said that the president lacks an understanding of Bitcoin, the FSC is openly hostile, and the Korean IRS focuses solely on taxation, creating a fragmented approach to crypto regulation.

However, despite the government’s hostile stance, South Korean citizens remain enthusiastic participants in the crypto market. Domestic exchanges like Upbit often rank among the world’s top platforms by trading volume, reflecting a vibrant local appetite for digital assets.

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