South Korea’s Financial Services Commission (FSC) has initiated the formation of a virtual asset committee.
The purpose of this committee is to address critical issues surrounding the approval of spot exchange-traded funds (ETFs) and the opening of corporate accounts for crypto exchanges.
According to Ki Young Ju, founder of CryptoQuant, this development is bullish, as it is expected to reduce the Kimchi premium, a phenomenon where cryptocurrencies trade at higher prices in South Korea compared to other markets.
As arbitrage funds and market makers enter the Korean market, price discrepancies could be minimized, creating more balanced trading opportunities.