South Korea to revisit stance on spot Bitcoin ETFs

2024-01-18 23:57:57

The office of the President of South Korea 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 that brokering transactions in foreign spot Bitcoin ETFs could violate capital market rules. A halt followed several local companies’ announcements in trading foreign BTC-based exchange-traded funds.

On Jan. 18, the Office of the President of the Republic of Korea asked the South Korean Financial Services Commission (FSC) to refrain from issuing a “do” or “don’t” directives for ETFs.

Tae Yoon Seong, head of the political department of the presidential administration, said:

“We are trying to make appropriate changes in our country’s legal or consider whether what happens abroad can be accepted in our country.”

Tae Yoon Seong, head of the political department

At the same time, another Asian country, Singapore, previously opposed the issuance of spot Bitcoin ETFs. The Monetary Authority of Singapore (MAS) announced it would ban the instrument for retail investors, despite the investment product being approved in the United States. However, retail investors in Singapore can participate in cryptocurrency exchange-traded funds listed overseas.

In addition, the Financial Intelligence Unit (FIU) plans to introduce new rules regarding digital asset commingling services. A FIU spokesperson said discussions began in Korea when the United States imposed sanctions on cryptocurrency mixers last year. However, a final decision on such enforcement is not expected shortly.

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