- The US SEC’s approval of the Bitcoin ETF struggles to impress South Korea.
- South Korean regulators remain firm on banning crypto ETFs in the country.
- The Financial Services Commission recently warned brokers not to fall victim to the allure of the Bitcoin ETF as the country evolves its regulatory framework.
South Korea remains steadfast in its mission to independently regulate the crypto sector , unwavering in the face of external pressures, including those from the US SEC, which recently championed the approval of the groundbreaking Bitcoin ETF .
Undeterred by the current hype in the market , the South Korean Financial Services Commission (FSC) remains unyielding in its regulatory approach, exemplified by a recent stern warning issued to brokers, cautioning them against succumbing to the allure of Bitcoin ETFs.
South Korea Unfazed Despite Major Crypto Win
On Friday, January 12, South Korea’s Financial Services Commission, equivalent to the US SEC, published a brief press release warning domestic securities firms brokering overseas-listed spot Bitcoin ETFs that they ‘may violate’ the existing government stance on virtual assets and the Capital markets Act.
The notice comes after the SEC officially approved the first spot Bitcoin ETF in the United States. Despite this major development, South Korean regulators promptly affirmed their commitment to maintain the ban on institutional investment in crypto . Their rationale was rooted in the perception that the crypto industry lacks a robust regulatory framework to safeguard investors.
However, South Korea’s regulatory landscape is not static and is gradually evolving. The government acknowledged ongoing efforts to review and adapt its regulations, particularly in response to global developments, particularly the approval of the Bitcoin ETF in the US. The FSC is actively working on a comprehensive two-part crypto regulation framework, with the initial phase slated to take effect in July 2024.
On the Flipside
- Despite South Korea’s firm stance, the global trend leans towards greater integration of cryptocurrencies. The US and other nations are increasingly acknowledging the potential of digital assets.
- South Korea recently proposed to ban citizens from buying crypto using credit cards to curb the illegal outflow of domestic funds overseas.
Why This Matters
As the crypto industry gains momentum, the need for a robust regulatory framework becomes increasingly evident. South Korea is adopting a meticulous approach to cryptocurrency regulation, ensuring it maintains its commitment to protecting its citizens while fostering an environment that encourages continuous crypto innovation.
Read where you can trade Bitcoin ETFs:
NASDAQ, NYSE, Cboe Gear Up to Offer Approved Bitcoin ETFs
Find out how SEC Chair Gary Gensler pushed the Bitcoin ETF through the finish line:
Gary Gensler’s Vote Decides Split Bitcoin ETF Showdown
