Major South Korean Securities Firms Suspend Spot Bitcoin ETF Brokerage Services
Several major securities firms in South Korea have suspended the brokerage services of spot bitcoin ETFs from Canada and Germany. This preemptive measure follows a cautionary announcement from the country’s financial watchdog, the Financial Services Commission (FSC). The FSC stated that brokering foreign-listed bitcoin spot ETFs may violate existing government positions on virtual assets and capital market laws. The suspension includes companies such as Samsung Group’s securities division and Mirae Asset Securities.
Mirae Asset Securities confirmed that it has halted new transactions of foreign spot bitcoin ETFs due to the FSC’s announcement. The company expressed concern that existing offerings of foreign-based bitcoin ETFs could be considered illegal. However, foreign bitcoin futures ETFs continue to trade across platforms without interruption.
Seeking Regulatory Clarity
The FSC plans to further examine the subject as South Korea continues to develop regulations surrounding cryptocurrencies. The regulator left room for discussion in its announcement. This warning comes after an FSC official stated that the US approval of spot bitcoin ETFs would not lead to a reconsideration of the ban on local financial institutions launching their own crypto ETFs.
South Korea is in the process of developing a two-part crypto regulation, with the first part set to go into effect in July this year. The second part aims to establish clear rules regarding the issuance, listing, and delisting of cryptocurrencies.
Hot Take: South Korean Securities Firms Suspend Spot Bitcoin ETF Brokerage Services Amid Regulatory Uncertainty
In response to a cautionary announcement from the Financial Services Commission (FSC), major securities firms in South Korea have suspended brokerage services for spot bitcoin ETFs from Canada and Germany. The FSC warned that these services may violate existing government positions on virtual assets and capital market laws. Companies such as Samsung Group’s securities division and Mirae Asset Securities have halted new transactions of foreign spot bitcoin ETFs.
This move reflects the concern among local brokerages that offering foreign-based bitcoin ETFs could be deemed illegal. While foreign bitcoin futures ETFs continue to trade, regulatory clarity is still sought in South Korea. The FSC plans to further examine the subject as the country develops cryptocurrency regulations. This comes as South Korea is working on a two-part crypto regulation, with the first part set to take effect in July. The second part aims to establish clear rules for cryptocurrencies’ issuance, listing, and delisting.
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