The Office of the President of the Republic of Korea is
challenging the Financial Services Commission’s (FSC) stance against spot Bitcoin
exchange-traded funds (ETFs). This step arrived about a week
after the FSC cautioned against trading US-based spot Bitcoin
ETFs following the approval of the funds by the Securities and Exchange Commission (SEC).
According to a report by a Korean media publication,
The Office of the President of the Republic of Korea has urged the FSC to adopt
a more flexible approach rather than a definitive “yes” or
“no”, indicating a potential shift in the regulatory landscape.
The FSC, a key financial regulator in South Korea,
recently issued a warning about domestic securities firms trading or brokering
overseas-listed spot Bitcoin ETFs, citing possible violations of the
Capital Markets Act.
However, the Office of the President of the Republic
of Korea has requested the FSC to refrain from taking a rigid stance and
explore the possibility of accommodating global developments. Tae-yoon Sung, The Head of the Presidential Policy Office, has emphasized the need to assess foreign practices for
potential adoption in the Korean legal system.
Additionally, the Office of the President of the
Republic of Korea highlighted the need for appropriate legal adjustments. It considers international practices while preventing potential side effects or
risks involving financial products and the economy.
Investor Perspectives and Market Trends
South Korea’s financial services regulator has
rejected the trading of spot Bitcoin ETFs despite the recent approval granted by the SEC. The FSC has clarified that it will not permit
the listing and trading of cryptocurrencies on its domestic financial market.
The regulator has expressed concerns
that brokerage activities related to overseas-listed spot Bitcoin ETFs might
violate the Capital Market Act. Additionally, the FSC is aiming for the adoption of a
cautious approach toward aligning such activities with South Korea’s regulatory
framework.
The lack of a legal basis recognizing virtual assets
in the country complicates this matter, making it challenging for the FSC to
allow the listing and indirect trading of crypto ETFs through domestic
securities firms.
Last week, the SEC approved 11 Bitcoin ETFs, marking
a historic decision that allows spot Bitcoin ETFs to be listed on major exchanges in the US. Gary Gensler, the SEC’s Chairman, clarified that the
authorization specifically pertains to exchange-traded products holding one
non-security commodity, which, in this case, is Bitcoin.
The Office of the President of the Republic of Korea is
challenging the Financial Services Commission’s (FSC) stance against spot Bitcoin
exchange-traded funds (ETFs). This step arrived about a week
after the FSC cautioned against trading US-based spot Bitcoin
ETFs following the approval of the funds by the Securities and Exchange Commission (SEC).
According to a report by a Korean media publication,
The Office of the President of the Republic of Korea has urged the FSC to adopt
a more flexible approach rather than a definitive “yes” or
“no”, indicating a potential shift in the regulatory landscape.
The FSC, a key financial regulator in South Korea,
recently issued a warning about domestic securities firms trading or brokering
overseas-listed spot Bitcoin ETFs, citing possible violations of the
Capital Markets Act.
However, the Office of the President of the Republic
of Korea has requested the FSC to refrain from taking a rigid stance and
explore the possibility of accommodating global developments. Tae-yoon Sung, The Head of the Presidential Policy Office, has emphasized the need to assess foreign practices for
potential adoption in the Korean legal system.
Additionally, the Office of the President of the
Republic of Korea highlighted the need for appropriate legal adjustments. It considers international practices while preventing potential side effects or
risks involving financial products and the economy.
Investor Perspectives and Market Trends
South Korea’s financial services regulator has
rejected the trading of spot Bitcoin ETFs despite the recent approval granted by the SEC. The FSC has clarified that it will not permit
the listing and trading of cryptocurrencies on its domestic financial market.
The regulator has expressed concerns
that brokerage activities related to overseas-listed spot Bitcoin ETFs might
violate the Capital Market Act. Additionally, the FSC is aiming for the adoption of a
cautious approach toward aligning such activities with South Korea’s regulatory
framework.
The lack of a legal basis recognizing virtual assets
in the country complicates this matter, making it challenging for the FSC to
allow the listing and indirect trading of crypto ETFs through domestic
securities firms.
Last week, the SEC approved 11 Bitcoin ETFs, marking
a historic decision that allows spot Bitcoin ETFs to be listed on major exchanges in the US. Gary Gensler, the SEC’s Chairman, clarified that the
authorization specifically pertains to exchange-traded products holding one
non-security commodity, which, in this case, is Bitcoin.
