South Korea stands firm on crypto ETF ban, unswayed by U.S. approval

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South Korea’s stance on cryptocurrency ETFs stays unchanged regardless of the U.S. giving the inexperienced gentle to a Bitcoin spot ETF. 

The South Korean authorities continues to disallow the launch of cryptocurrency ETFs, adhering to its long-standing coverage of not recognizing digital currencies as monetary property. Since 2017, monetary establishments within the nation have been barred from investing in cryptocurrencies.

Native sources have reported that the Monetary Providers Fee (FSC) of South Korea reaffirms the federal government’s dedication to monetary market stability and investor safety. The FSC official highlighted that there was no evaluation to change the federal government’s coverage on digital asset funding by monetary establishments.

This place was cemented on Dec. 13, 2017, when the federal government launched emergency measures regarding digital currencies. These measures prohibit monetary establishments from holding, buying, utilizing as collateral, or investing in digital property.

Regardless of different nations like China, Germany, and Canada working spot ETFs and the U.S. permitting futures ETFs, South Korea views the SEC’s restricted approval of spot ETFs as inadequate to affect its home insurance policies. South Korean regulation, significantly Article 4 of the Capital Markets Act, specifies that solely monetary funding merchandise, currencies, and basic commodities may be underlying property for ETFs, excluding cryptocurrencies.

The Monetary Providers Authority (FSA) of South Korea echoes a cautious strategy in the direction of amending legal guidelines to incorporate digital property as underlying property for ETFs. In a current interview with native media, an FSA official famous that the SEC’s restricted approval of digital asset ETFs was a reluctant transfer following a court docket determination and warned that permitting cryptocurrency investments might probably weaken the home inventory market base.

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