South Korean Regulators Preserve Ban on Crypto ETFs; Unmoved by SEC Nod

• South Korean authorities rule out the potential of a cryptocurrency ETF within the nation.  
• The federal government stays restrictive on cryptocurrencies, and monetary establishments are banned from investing in them. 
• An official acknowledged that the ban is to stabilize the market and shield buyers.

South Korean regulators have doused hopes of a cryptocurrency exchange-traded fund (ETF) launch within the nation, in line with experiences from a neighborhood information outlet. 

The nation’s Monetary Service Fee reiterated the federal government’s restrictive coverage on cryptocurrency property, which aren’t acknowledged as monetary property within the area. Moreover, monetary establishments are prohibited from investing in cryptocurrencies, a rule that has remained since 2017. 

The continued restrictive stance on crypto comes amidst current developments in different international locations. Yesterday, the U.S. Securities and Alternate Fee (SEC) permitted 11 spot Bitcoin ETF functions, ending years of ready. 

An official of the South Korean Monetary Companies Fee was quoted as having mentioned: 

The (South Korean) authorities has constantly maintained the precept of prohibiting monetary establishments from investing in digital property in an effort to stabilize the monetary market and shield buyers. There are not any enemies.

Commenting on the SEC approval, which is seen by many as a watershed second, the official mentioned the approval shouldn’t be “a brand new incident.” In accordance with the official, “The US beforehand allowed futures ETFs, and a few international locations comparable to Hong Kong, Germany, and Canada are already working spot ETFs.” 

In the meantime, the official argued that the SEC’s reluctant approval was in response to a court docket resolution. The coverage in South Korea is predicted to stay so for some time, in line with the official. Authorities within the nation stay cautious of an institutional collapse on account of digital asset market uncertainties. 

Nonetheless, crypto market contributors within the Asian nation argue for an ETF launch. Kim Jun-woo, CEO of a neighborhood crypto agency, acknowledged that South Korea also needs to observe within the U.S. footsteps by launching a Bitcoin ETF. “In a state of affairs the place the authorized foundation for regulation has disappeared, the one distinction is whether or not to do it preemptively or reluctantly observe alongside,” the manager argued.