Cryptocurrency

Korea FSC warns against overseas Bitcoin ETF brokerage





Korea FSC warns against overseas Bitcoin ETF brokerage

The Financial Services Commission announced on the 12th that it had raised concerns that domestic securities firms that broker overseas-listed Bitcoin spot exchange-traded funds (ETFs) may be violating local laws.
The regulator acknowledged that the country is creating a regulatory framework for an emerging industry, but warned that brokerage services for these foreign ETFs could violate the Virtual Asset User Protection Act and the Capital Markets Act.
The FSC also announced its intention to comprehensively review its regulations to bring them in line with international practice.
After the warning, it was reported that several domestic securities firms, including Samsung Group Securities Division and Mirae Asset Securities, suspended services for overseas spot Bitcoin ETFs in various countries, including Canada and the United States.
The FSC’s warning follows the renewed ban on financial institutions investing in cryptocurrencies. In December 2017, South Korean regulators implemented emergency measures banning institutions from investing in cryptocurrencies. Afterwards, the country embarked on a comprehensive cryptocurrency regulation plan that will be implemented by July.
South Korea may not currently accept spot cryptocurrency ETFs, but it recently announced plans for officials to declare cryptocurrency assets. The Domestic Ethics Policy Department announced that it plans to disclose assets held by approximately 5,800 public officials.
On January 10, the U.S. Securities and Exchange Commission (SEC) approved the launch of 11 spot Bitcoin ETFs from multiple issuers including Grayscale, BlackRock, and others, after years of rejection due to market manipulation concerns.
The ETF quickly attracted significant community attention, with trading volume exceeding $4 billion on its first day of trading.
Meanwhile, major US traditional companies such as Vanguard are also restricting their customers from purchasing these Bitcoin ETFs. The company said these investments were not consistent with the company’s investment philosophy.
The post Korea Financial Services Commission warns against overseas Bitcoin ETF brokerage appeared first on CryptoSlate.

BitRss.com always shares this content with: Patent.

Thanks for sharing!



Related Articles

Back to top button