South Korea’s Presidential Office has urged the Financial Services Commission (FSC) to reconsider its stance on spot Bitcoin exchange-traded funds (ETFs).
Key Takeaways
- South Korea’s Presidential Office urges the FSC to reevaluate its position on spot Bitcoin ETFs a week after warning against U.S.-based ETFs.
- The Office suggests a nuanced approach, avoiding a strict “do” or “not” directive, and is considering legal changes to align with global developments.
- The FSC had previously indicated that trading or brokering overseas-listed spot Bitcoin ETFs may violate the Capital Markets Act.
- While acknowledging risks, South Korea is exploring low-risk aspects of ETF offerings and assessing compatibility with its evolving regulatory framework.
Reassessment of Spot Bitcoin ETF
In a notable shift, South Korea’s Presidential Office, also known as the Yongsan Presidential Office, has urged the country’s Financial Services Commission (FSC) to reconsider its position on spot Bitcoin exchange-traded funds (ETFs). This comes on the heels of the FSC’s caution against trading U.S.-based ETFs just a week prior.
FSC’s Previous Warning and Regulatory Landscape
The FSC, as a principal financial regulator in South Korea, had issued a cautionary press release on January 12. It suggested that domestic securities firms involved in trading or brokering overseas-listed spot Bitcoin ETFs “may violate” the Capital Markets Act. This act, geared towards fostering financial innovation and fair competition, is a cornerstone of South Korea’s capital markets.
Financial Intelligence Unit’s Role
In parallel, South Korea’s Financial Intelligence Unit (FIU) is reportedly contemplating new regulations concerning digital asset mixing services. The discussions were sparked by U.S. sanctions against crypto mixers, although a final decision on enforcement is not expected imminently.
Read More: Bitcoin May Drop to $32,000 After Spot ETF Approval
To Conclude
South Korea’s Presidential Office’s call for a reevaluation of the FSC’s stance on spot Bitcoin ETFs signals a nuanced approach to global developments. The emphasis on adapting the legal system and exploring low-risk aspects reflects a willingness to strike a balance between regulatory caution and the evolving cryptocurrency landscape.
