Two South Korean Brokerages Halt Transactions of Foreign Spot Bitcoin ETFs
Two major South Korean securities firms, Samsung Securities and Mirae Asset Securities, have suspended transaction services for foreign spot Bitcoin ETFs. This decision comes after an announcement from South Korea’s Financial Services Commission (FSC), the country’s top financial watchdog. According to the FSC, domestic securities firms that broker overseas-listed Bitcoin spot ETFs may violate government regulations on virtual assets and the Capital Markets Act.
SEC’s Approval Influences FSC’s Decision
The timing of the FSC’s announcement is likely related to the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs. However, an FSC official stated that the SEC’s decision would not change their ban on South Korean financial institutions releasing their own cryptocurrency ETFs.
Samsung Securities and Mirae Asset Securities Suspend Transactions
Samsung Securities and Mirae Asset Securities have both halted transactions of foreign Bitcoin ETFs. These suspensions are in response to the FSC’s announcement, as South Korean financial institutions fear that offering foreign Bitcoin ETFs could be considered illegal by the government. It is important to note that this suspension does not affect the trading of foreign Bitcoin futures ETFs in Korea, as they were not mentioned in the FSC’s statement.
FSC Open to Reviewing the Situation
The FSC indicated that they are open to further review of the situation due to ongoing regulations on virtual assets in South Korea. They stated that regulations are being established, such as the Act on the Protection of Users of Virtual Assets, and they plan to review them further. South Korea is currently working on a two-part regulation policy for crypto, with the first part focusing on legislation for virtual assets and investor protection, and the second part addressing rules for the issuance, listing, and delisting of cryptocurrencies.
Hot Take: South Korean Brokerages React to FSC’s Warning
Two major South Korean securities firms, Samsung Securities and Mirae Asset Securities, have temporarily suspended transaction services for foreign spot Bitcoin ETFs. The Financial Services Commission (FSC) issued a warning that brokering overseas-listed Bitcoin spot ETFs may violate government regulations on virtual assets and the Capital Markets Act. The FSC’s decision comes after the US Securities and Exchange Commission approved spot Bitcoin ETFs. While this suspension does not affect foreign Bitcoin futures ETFs, it has raised concerns among South Korean financial institutions about the legality of offering foreign Bitcoin ETFs. The FSC has expressed openness to further review of the situation as regulations on virtual assets continue to be established in the country.
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