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- South Korea warns against the domestic brokerage of the US-listed bitcoin ETFs.
- The country does not intend to lift the ban on exchange-traded funds or cryptocurrencies.
- The move came following the US SEC’s historic decision to approve the Spot Bitcoin ETF launch.
South Korea reiterated its stance against the crypto exchange-traded funds in response to the US Securities and Exchange Commission’s Bitcoin ETF approval. In addition to South Korea’s decision to pursue restrictions on ETFs, the country recently warned that brokering US spot ETFs will be illegal in local markets.
In an official statement on January 12, the Financial Services Commission (FSC) of South Korea asserted that the domestic brokerage of the US-listed Bitcoin ETFs will violate the country’s existing rules of virtual assets. The FSC stated, “For domestic securities firms, any brokering of overseas-listed Bitcoin spot Exchange Traded Funds may violate the existing government stance on virtual assets and the Capital Markets Act.”
Subsequent to the SEC’s landmark decision on Bitcoin ETFs, South Korea proclaimed that the country does not intend to lift the ban on ETFs. Remaining unmoved by the US SEC’s decision, South Korea reiterated its restrictive policy on crypto assets. South Korea’s regulatory body added that the country will continue scrutinizing the regulatory landscape surrounding spot bitcoin ETF investment.
Notably, South Korea does not consider cryptocurrencies as financial assets. Concerned about the potential risks and threats associated with digital assets, the country banned crypto investments in 2017.
South Korea’s firm stance on the crypto restrictions aligns with the country’s cautious approach to crypto regulations. The country is currently working on a two-part crypto regulation. While the first part was issued last year, the second part is set to focus on establishing comprehensive rules on the issuance, listing, and delisting of virtual assets.
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