[NEWS] South Korean financial authorities advise domestic traders to ban trading in Bitcoin spot ETFs

On the 12th, the Financial Services Commission (FSC) recommended that domestic traders be prohibited from dealing in US Bitcoin spot ETFs.

According to the statement, Korean securities companies dealing in US Bitcoin spot ETFs may violate the government's views on crypto assets (virtual currencies) and the Capital Markets Act. Meanwhile, as crypto-related regulations come into effect in July this year, the FSC said it will consider revising regulations based on overseas cases, including the US.

The FSC also said that it has not completely rejected the possibility of Korea approving a Bitcoin spot ETF in the future, and is taking into account the fact that other countries, including the US, have shown a flexible attitude toward crypto assets, indicating that there is room for discussion in the future.

Financial institutions banned from holding crypto assets since 2017

In December 2017, the Korean government solidified its policy of banning financial institutions from holding, purchasing, using as collateral, or investing in crypto assets and introduced emergency measures. At the time, FSC officials said that it was unlikely that the Korean government's policy on financial institutions' investment in crypto assets would change, regardless of the circumstances in the US and other countries.

Following the FSC's recommendation, Korean stock exchanges Mirae Asset Securities and Samsung Securities have reportedly suspended transactions related to Bitcoin spot ETFs for Canadian and German clients.

The Bitcoin spot ETF approved by the SEC (U.S. Securities and Exchange Commission) on the 10th is listed on the Nasdaq, New York Stock Exchange, Chicago Board Options Exchange, and other exchanges. Following the approval of the Bitcoin spot ETF in the Korean market, ETF-related stocks soared. However, the stock market began to fall after the FSC released its statement the other day.

Reference:Announcement
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