South Korea Asks FSC to Reconsider Stance on Spot Bitcoin ETFs
After the Financial Services Commission (FSC) of South Korea issued a warning against trading United States-based spot Bitcoin exchange-traded funds (ETFs) last week, the Office of the President is now urging the regulator to reconsider its stance.
According to a local report from Maekyung, on January 18, the Office of the President requested that the FSC refrain from issuing a definitive stance on ETFs.
Tae-yoon Sung, the head of the presidential policy office, stated:
“We are considering whether to adjust our legal system or to assess whether we can adopt the practices from other countries.”
Despite the potential risks associated with ETF trading, South Korea is also evaluating the low-risk aspects of these offerings, as per Sung’s statement.
As the primary financial regulator in the country, the FSC had released a brief press statement on January 12, which suggested that brokerage firms and securities companies dealing in overseas-listed spot Bitcoin ETFs may be violating the Capital Markets Act.
