South Korea’s Financial Regulator Bans Domestic Securities Firms from Offering Spot Bitcoin ETFs Internationally

In a recent press release, South Korea’s Financial Services Commission (FSC) announced that domestic securities firms are prohibited from offering spot Bitcoin exchange-traded funds (ETFs) in international markets. This decision aligns with the government’s stance on virtual assets and aims to ensure compliance with existing regulations.

The FSC has indicated a willingness to review its crypto regulation stance in the future, although specific details have not been provided at this time. Following this announcement, local securities firms such as Mirae Asset Securities and Samsung Securities have suspended transactions for clients in Canada and Germany involving spot Bitcoin ETFs.

For example, Mirae Asset Securities halted trading of its Purpose Bitcoin ETF, which had been trading without restrictions on the Canadian stock exchange since February 2021. Despite the recent changes, the FSC has not indicated any plans to alter the government’s policy on virtual asset investment by financial institutions.

While the U.S. Securities and Exchange Commission (SEC) recently approved spot Bitcoin ETFs for listing on national exchanges, South Korea remains firm in its stance on cryptocurrencies. The government implemented emergency measures in 2017 to restrict financial institutions from holding, purchasing, or investing in cryptocurrencies.

In light of the recent developments in the ETF market, investors are advised to exercise caution due to the inherent risks associated with Bitcoin and crypto-related products. Stay informed about the latest updates in the cryptocurrency space to make informed investment decisions.

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