Despite the recent approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), the South Korean government has reiterated its commitment to maintaining its ban on such products. South Korean regulators have made it clear that there will be no policy shift, and cryptocurrencies will not be recognized as financial assets.
Since 2017, South Korea has maintained a stringent stance on cryptocurrencies, prohibiting financial institutions from investing in these digital assets. The Financial Services Commission (FSC) has emphasized that this approach is designed to stabilize the financial market and protect investors. An official from the FSC reiterated the country’s commitment to these principles, stating, “The government has consistently maintained the principle of prohibiting financial institutions from investing in virtual assets in order to stabilize the financial market and protect investors. There are no changes in our stance.”
Despite the fact that futures ETFs have been allowed in the United States and spot Bitcoin ETFs are already operating in countries such as Hong Kong, Germany, Canada, and now the U.S., the South Korean official indicated that these developments are not new or surprising. Legal restrictions in Korea also make launching a virtual asset ETF impossible, as the Capital Markets Act only lists financial investment products, currencies, and general merchandise as eligible underlying assets for ETFs.
Financial authorities in South Korea are also opposed to amending the law to include cryptocurrencies as underlying assets for ETFs. They argue that the U.S. financial sector was able to withstand the collapse of the virtual asset market because it also prohibits financial institutions from investing in them. SEC Chairman Gary Gansler clarified in a statement that the decision to approve the spot Bitcoin ETF was “limited to cash exchange-traded products (ETPs) holding Bitcoin” and “does not signal an intention to approve listing standards for virtual asset securities.”
Despite this regulatory stance, Kim Jun-woo, CEO of CrossAngle, suggested introducing a spot Bitcoin ETF, citing low volatility. He noted, “In a situation where the legal basis for regulation has disappeared, the only difference is whether to do it preemptively or reluctantly follow along.”
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇺🇸 🇭🇰 🇩🇪 🇨🇦 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Kim Jun-woo, Gary Gansler |
| Companies | Binance Futures, U.S. Securities and Exchange Commission, CrossAngle, Financial Services Commission |
| Currencies | Bitcoin |
| Securities | None |
