The Financial Services Commission (FSC), South Korea’s main financial regulator, has issued a warning to local firms about brokering spot Bitcoin exchange-traded funds (ETFs) from the United States. The FSC’s statement, released on January 12, highlighted that such activities could potentially contravene the government’s current position on virtual assets and the Capital Markets Act.

Despite this, the FSC acknowledged that the regulatory framework for cryptocurrencies in South Korea is still being developed. As such, the Commission intends to review its regulations in light of overseas developments, particularly those in the U.S.

The U.S. Securities and Exchange Commission (SEC) granted legal approval for the trading of spot Bitcoin ETFs on January 10, with trading commencing the following day. Data indicates that the total volume across ten spot Bitcoin ETFs exceeded $4.5 billion on the first day of trading. Investment manager Timothy Peterson of Cane Macro estimates that this level of activity equates to the need to purchase approximately 47,000 Bitcoin, valued at $2.1 billion, on the spot market.

Following the Bitcoin ETFs, Ether spot ETFs are next in line. BlackRock, for instance, filed for a spot Ether ETF in November 2023. The SEC is set to make a decision by May 23, 2024. Many in the crypto community are optimistic about the outcome, believing that the launch of Bitcoin spot ETFs bodes well for an Ether ETF.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Asia
Countries	🇺🇸
Sentiment	neutral
Relevance Score	1
People	Rune Christensen, Timothy Peterson
Companies	Cane Macro, Financial Services Commission, United States Securities and Exchange Commission, BlackRock, Cointelegraph
Currencies	Bitcoin, Lido Staked Ether
Securities	None