South Korea's Korea Institute of Finance warns against the approval of spot crypto exchange-traded funds (ETFs), citing potential harm to the country's financial stability. Researcher Bo-mi Lee argues that the introduction of such products could lead to inefficiencies in resource allocation and worsen financial market liquidity. Lee also highlights the need for more research into the potential losses and benefits of introducing spot crypto ETFs. Meanwhile, South Korea's financial regulator is tightening rules on crypto assets, requiring registered crypto exchanges to evaluate the tokens listed on their platforms from July 19.