The President of South Korea Urges Financial Regulator to Reconsider Spot Bitcoin ETFs
The office of the President of South Korea has called on the country’s financial regulator to reconsider the possibility of admitting spot Bitcoin (BTC) ETFs to trading in the country. Previously, the local Financial Services Commission warned South Korean companies about brokering transactions in foreign spot Bitcoin ETFs, citing potential violations of capital market rules. This warning led to a halt in trading foreign BTC-based exchange-traded funds by several local companies.
President’s Office Requests Flexibility from Financial Services Commission
The Office of the President asked the South Korean Financial Services Commission (FSC) to refrain from issuing strict directives for ETFs. Tae Yoon Seong, head of the political department of the presidential administration, stated that they are considering appropriate changes in the country’s legal system and whether foreign practices can be accepted in South Korea.
Singapore Also Opposes Spot Bitcoin ETFs
Singapore, another Asian country, has previously opposed the issuance of spot Bitcoin ETFs. The Monetary Authority of Singapore (MAS) decided to ban this investment instrument for retail investors, despite its approval in the United States. However, retail investors in Singapore can still participate in cryptocurrency exchange-traded funds listed overseas.
New Rules for Digital Asset Commingling Services
The Financial Intelligence Unit (FIU) in South Korea is planning to introduce new rules regarding digital asset commingling services. These discussions were initiated after the United States imposed sanctions on cryptocurrency mixers last year. However, a final decision on implementing these rules is not expected to be made anytime soon.
Hot Take: South Korea Explores Possibility of Spot Bitcoin ETFs Amid Global Debate
The President of South Korea’s call for reconsideration of spot Bitcoin ETFs reflects the ongoing global debate surrounding these investment instruments. While some countries like the United States have approved them, others such as Singapore and South Korea are hesitant. The decision to allow spot Bitcoin ETFs involves careful consideration of legal frameworks and foreign practices. It remains to be seen how South Korea will navigate this issue and whether it will join the growing list of countries embracing these investment options.
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