Despite the United States approving 11 spot bitcoin exchange-traded funds (ETFs) earlier this week, South Korea has reiterated its ban on crypto ETFs. The country’s financial institutions are prohibited from owning or buying crypto and investing in businesses offering crypto. The Financial Services Commission (FSC) of South Korea continues to restrict financial institutions from launching crypto ETFs.
South Korea’s top financial regulator has stated that it will not change its anti-ETF stance. An official from the FSC explained that the US’s approval of spot BTC ETFs would not influence it to lift its current ban on ETFs or even to reconsider it. The FSC official emphasized that the government has consistently maintained the principle of prohibiting financial institutions from investing in virtual assets for the stability of the financial market and protection of investors. The official added that there’s no situation warranting a change in government policy, and it has not been reviewed.
While the US previously allowed futures ETFs, and countries like Hong Kong, Germany, and Canada already operate spot ETFs, the recent authorization is nothing new to consider. According to Article 4 of the country’s Capital Markets Act, underlying assets for ETFs are limited to financial investment products, currencies, and general commodities. The list excludes crypto from the scope of underlying assets for investment contract securities. In 2017, South Korea banned financial institutions from investing in crypto and does not recognize cryptocurrencies as financial assets.
While South Korea adamantly prohibits ETFs, the crypto industry is reveling in excitement about the SEC’s approval of spot bitcoin ETFs. Amid the joyous win for bitcoin and crypto in the US, the market acted rather unexpectedly. With the announcement, many altcoins, particularly Ethereum (ETH), rocketed, while $BTC remained flat. The news saw $ETH gain over 10% on the day of approval. The road to a spot ETF approval has been long and arduous, and indeed comes as a welcome “win” for all who have walked it.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇺🇸 🇭🇰 🇩🇪 🇨🇦 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | Financial Services Commission, US Securities and Exchange Commission |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
