South Korea’s Financial Services Commission (FSC) barred local securities brokers from listing spot Bitcoin">Bitcoin exchange-traded funds (ETFs) in international markets. FSC said such offerings could violate current government crypto rules.
Firms like Mirae Asset Securities and Samsung Securities suspended trading related to foreign Bitcoin ETFs following the dictate. Mirae halted its popular Purpose Bitcoin ETF in Canada, available from 2021 until now.
While opening the door to revising digital asset policies down the line, this move aligns with South Korea’s long-cautious stance. Restrictions introduced in late 2017 prohibit local financial institutions from numerous crypto activities.
Contrast this with the U.S. SEC approving several spot Bitcoin ETFs this month, opening access for American retail investors. Yet comments from SEC Chair Gary Gensler told investors to remain wary around crypto products.
South Korea’s hesitation follows familiar themes worrying regulators globally. But erring too restrictive risks local investors and startups falling behind innovation moves quicker elsewhere. With prudent legislation, the FSC could still foster blockchain progress rather than hinder it.
