South Korea’s top financial regulator said today it would follow rules restricting financial institutions from launching cryptocurrency exchange-traded funds (ETFs), local media reported.
Domestic Financial Services Commission official said Local news outlet Kyunghyang Shinmun said the approval of spot Bitcoin ETFs in the U.S. is not an event that would lead Korean regulators to lift or reconsider the ban. The report cited financial market stability and investor protection as reasons for maintaining current regulations.
of that country Capital Markets Act Currently, the scope of underlying assets of investment contract securities such as ETFs is limited to financial investment products, currencies, and general products that do not include cryptocurrency. Korea does not recognize cryptocurrency as a financial asset, and has banned financial institutions from investing in cryptocurrency since 2017.
South Korea is developing a two-part cryptocurrency regulation. The first part was passed last year and is scheduled to take effect in July 2024. South Korea is formulating the second part of its cryptocurrency law, which aims to set clear rules regarding issuance. And cryptocurrency delisting.
FSC did not immediately respond to The Block’s request for comment.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.