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). The call for reconsideration comes merely a week
after the FSC’s cautionary statement against trading US-based spot Bitcoin
ETFs, prompted by the SEC’s approval in the United States.
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 nuanced 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, suggesting 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 changes to accommodate global developments. Tae-yoon Sung, head of the
presidential policy office, emphasized the need to assess foreign practices for
potential adoption in the Korean legal system.
Despite the FSC’s reluctance toward US-based spot Bitcoin ETFs, domestic investors may find alternatives more accessible, such as
direct investment or Ethereum futures ETFs. IBK Investment & Securities
predicts a solid demand for individual investors to directly engage in the
cryptocurrency market.
Additionally, the Office of the President of the
Republic of Korea emphasizes the need for appropriate legal adjustments and
considers international practices while preventing potential side effects or
risks for other financial products and the real 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 US Securities
and Exchange Commission (SEC). The FSC has clarified that it will not permit
the listing and trading of cryptocurrencies on its domestic financial market.
In a statement, the regulator expressed concerns
that brokerage activities related to overseas-listed spot Bitcoin ETFs might
violate the Capital Market Act. Additionally, it wants the adoption of a
cautious approach towards aligning such activities with the nation’s regulatory
framework.
The lack of a legal basis recognizing virtual assets
in South Korea 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 US
stock exchanges. 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). The call for reconsideration comes merely a week
after the FSC’s cautionary statement against trading US-based spot Bitcoin
ETFs, prompted by the SEC’s approval in the United States.
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 nuanced 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, suggesting 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 changes to accommodate global developments. Tae-yoon Sung, head of the
presidential policy office, emphasized the need to assess foreign practices for
potential adoption in the Korean legal system.
Despite the FSC’s reluctance toward US-based spot Bitcoin ETFs, domestic investors may find alternatives more accessible, such as
direct investment or Ethereum futures ETFs. IBK Investment & Securities
predicts a solid demand for individual investors to directly engage in the
cryptocurrency market.
Additionally, the Office of the President of the
Republic of Korea emphasizes the need for appropriate legal adjustments and
considers international practices while preventing potential side effects or
risks for other financial products and the real 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 US Securities
and Exchange Commission (SEC). The FSC has clarified that it will not permit
the listing and trading of cryptocurrencies on its domestic financial market.
In a statement, the regulator expressed concerns
that brokerage activities related to overseas-listed spot Bitcoin ETFs might
violate the Capital Market Act. Additionally, it wants the adoption of a
cautious approach towards aligning such activities with the nation’s regulatory
framework.
The lack of a legal basis recognizing virtual assets
in South Korea 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 US
stock exchanges. 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.
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- Source: https://www.financemagnates.com//cryptocurrency/south-koreas-president-challenges-the-fscs-warning-on-bitcoin-etfs/
