South Korean Regulators Stand Firm Against Crypto ETFs Amid U.S. Approval
Despite US Bitcoin ETF Approval, South Korea Holds Firm on Crypto Investment Ban for Financial Stability.
While the US approved Bitcoin Spot ETF on 10th January, South Korea's main financial regulator still stands on its rule against cryptocurrency ETFs, as reported by local media. The decision is based on maintaining financial stability and protecting investors.
The country's laws currently restrict ETFs to traditional financial instruments and commodities, excluding cryptocurrencies. Since 2017, financial institutions in South Korea have been barred from investing in crypto, as it's not recognized as a financial asset.
South Korea is actively working on crypto regulation. The first part was passed last year and will be effective from July 2024. The second part, which is under development, will provide clear rules for crypto issuance, listing, and delisting.
