Despite the recent approval of spot Bitcoin
exchange-traded funds (ETFs) by the US Securities and Exchange Commission
(SEC), the South Korean Financial Services Commission (FSC) firmly stated it
would not permit the trading of cryptocurrencies on its local financial market.
This decision, detailed in a press release yesterday
(Thursday), sends a clear message that South Korea is cautious about the
fast-growing crypto market.
The FSC’s stance centers around the potential
contradiction between domestic securities firms brokering overseas-listed spot
Bitcoin ETFs and the South Korean government’s position on virtual assets.
The FSC emphasized that such brokerage may violate
the Capital Market Act, raising concerns about aligning these activities with
the nation’s regulatory framework.
With no legal basis recognizing virtual assets as
basic assets, the FSC deems it challenging to allow the listing and indirect
trading of crypto ETFs through securities firms. Despite the current stance, the FSC hinted at
possible future developments. Additional reviews will be conducted as South Korea approaches enforcing a new law on virtual assets in July.
Expect ongoing updates as this story evolves.
Despite the recent approval of spot Bitcoin
exchange-traded funds (ETFs) by the US Securities and Exchange Commission
(SEC), the South Korean Financial Services Commission (FSC) firmly stated it
would not permit the trading of cryptocurrencies on its local financial market.
This decision, detailed in a press release yesterday
(Thursday), sends a clear message that South Korea is cautious about the
fast-growing crypto market.
The FSC’s stance centers around the potential
contradiction between domestic securities firms brokering overseas-listed spot
Bitcoin ETFs and the South Korean government’s position on virtual assets.
The FSC emphasized that such brokerage may violate
the Capital Market Act, raising concerns about aligning these activities with
the nation’s regulatory framework.
With no legal basis recognizing virtual assets as
basic assets, the FSC deems it challenging to allow the listing and indirect
trading of crypto ETFs through securities firms. Despite the current stance, the FSC hinted at
possible future developments. Additional reviews will be conducted as South Korea approaches enforcing a new law on virtual assets in July.
Expect ongoing updates as this story evolves.
