👉👉👉 South Korea Regulator Holds Firm Stance Against Crypto #ETFs Approval

Crypto remains a high-risk asset class, and this article is provided for informational purposes only, not constituting investment advice. Users of this website agree to abide by the terms & conditions, acknowledging the use of affiliate links with potential commissions.

While the United States has recently granted approval for Bitcoin exchange-traded funds (ETFs) after a decade-long wait, South Korea remains steadfast in its ban on BTC ETFs. The Financial Services Commission (FSC) of South Korea categorically stated that the launch of virtual currency ETFs is deemed "impossible," with no foreseeable changes.

Currently, the country has imposed a ban on banks & financial institutions from acquiring and holding #cryptocurrencies. The FSC expressed concerns about the "illegal outflow of domestic funds overseas due to credit card payments on foreign crypto exchanges."

The ban aligns with efforts to "stabilize" the financial markets, as stated by an FSC official in response to a recent investigation revealing substantial #CryptoTrading activities among South Korea's lawmakers.

Referring to countries like the United States, Hong Kong, and Germany that have already introduced crypto futures ETFs or spot ETFs, the FSC official emphasized the legal impossibility of launching a virtual asset ETF. The Capital Markets Act in the country's Article 4 explicitly designates financial #Investment products, currencies, and general products as eligible underlying assets for ETFs.

In contrast, the US Securities and Exchange Commission (#SEC ) recently granted approval for the listing and trading of several spot Bitcoin ETFs, expanding access to cryptocurrencies for a broader investor base. The South Korean FSC official acknowledged this development but highlighted that the US financial sector remained resilient during the crypto industry's downturn due to its prohibition on banks & financial institutions from investing in virtual assets, a policy similarly upheld in Korea.

Source - cryptonews.com