- There has been no change in the attitude of the FSS toward Bitcoin spot and futures ETFs.
- The FSS is now required to conduct a securities evaluation of each ETF operating in South Korea.
South Korean financial regulators are being quite controlling when it comes to cryptocurrency investment products. Therefore Bitcoin spot and futures ETFs are still not available there. Amidst much consternation, the Financial Supervisory Service (FSS) has also prohibited the introduction of exchange-traded funds (ETFs) that invest in businesses associated with virtual assets. Including prominent international corporations like Coinbase.
There has been no change in the attitude of the South Korean Financial Supervisory Service. Especially, toward Bitcoin spot and futures ETFs. And the agency continues to frown upon efforts to establish funds associated with companies that deal in cryptocurrencies. Many obstacles have stood in the way of asset management firms capitalizing on the surging demand for virtual assets.
Regulatory Hurdle
We were going to launch an ETF that would invest in Coinbase, but the FSS said we can’t for the moment, according to an official from one of the companies. According to the asset management, the ETF was ready to debut but was halted due to regulatory concerns.
The FSS is now required to conduct a securities evaluation of each ETF operating in South Korea. The present regulatory system has prevented any cryptocurrency-related fund from obtaining official clearance to begin operations, according to industry sources. This choice is made in spite of the fact that Bitcoin’s price is expected to reach $200,000 after reaching a record high of $95,000.
Skeptics further claim that the FSS has unlawfully barred funds from participating in virtual asset firms and Bitcoin spot and futures ETFs. The “Virtual Currency Emergency Measures” of 2017 forbade financial institutions from engaging in virtual asset activity, and these limitations follow on from that.
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