South Korean official calls for discussion on regulating perpetual futures

A South Korean financial official has stated that a discussion is needed on how to regulate perpetual futures amid growing interest in the digital asset market, The Herald Business reported. Speaking at a recent event at the Seoul Southern District Court, Shim Won-tae, an administrative officer at the Financial Services Commission's Virtual Asset Division, described perpetual futures as an "area that needs discussion." He explained that while standard futures require intermediate settlement, perpetual futures use a separate mechanism called a "funding rate" to enable trading without an expiration date. Shim noted that a debate is necessary on whether to classify and regulate these instruments as traditional derivatives.