South Korea Firm on Crypto ETF Ban
South Korea has restated its ban on crypto exchange-traded funds (ETFs), despite the recent approval of 11 spot bitcoin ETFs by the US Securities and Exchange Commission. The country’s Financial Services Commission (FSC) maintains its stance of prohibiting financial institutions from launching ETFs. A representative from the FSC explained that the US approval would not influence South Korea to lift or reconsider its ban. The FSC cited stability and investor security as the reasons for upholding the ban. South Korea’s Capital Markets Act also limits ETF underlying assets to financial products, currencies, and commodities, excluding crypto.
Crypto Industry Excitement Over US Approval
While South Korea remains against ETFs, the crypto industry celebrated the SEC’s approval of spot bitcoin ETFs. The market reacted unexpectedly, with altcoins like Ethereum surging in value while bitcoin remained flat. Ethereum saw an increase of over 10% on the day of the approval. This approval is seen as a significant milestone and a victory for the crypto community after a long and challenging journey.
Hot Take: South Korea Stays on the Sidelines as US Embraces ETFs
As the US approves spot bitcoin ETFs, South Korea stands firm in its ban on crypto ETFs. The Financial Services Commission believes that keeping financial institutions away from crypto assets ensures stability in the financial market and protects investors. While the US approval may have sparked excitement in the crypto industry, South Korea remains committed to its anti-ETF stance. The divergence in approach between these two countries highlights the ongoing global debate regarding the use and regulation of crypto assets.
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