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South Korean Financial Regulator Says U.S. Bitcoin ETFs May Violate Local Law
Further review and consideration regarding crypto ETFs is planned, the regulator says.
South Korea’s Financial Services Commission (FSC), the nation’s financial regulator, said in a statement that recently-listed U.S. bitcoin ETFs may violate Korean law.
The regulator says that domestic brokerage of a U.S.-listed bitcoin spot ETF by Korean securities firms may potentially conflict with the country’s Virtual Asset User Protection Act and the Capital Markets Act without elaborating.
STORY CONTINUES BELOW
In 2017, The Bank of Korea’s governor, Lee Ju-yeol, stated that cryptocurrencies are commodities, not legal tender, and emphasized the need for regulation in this area.
The FSC said in its notice that further review is coming. SEC chair Gary Gensler is scheduled to meet his Korean counterpart sometime this month in Washington, DC.
Recently, authorities in South Korea said they were planning on creating regulations that would make officials’ crypto holdings public.
In the U.S., Vanguard has decided not to offer spot bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC), on its platform, citing what it calls a misalignment with the company’s investment portfolio strategy.
Sam Reynolds
Sam Reynolds is a senior reporter based in Asia. Sam was part of the CoinDesk team that won the 2023 Gerald Loeb award in the breaking news category for coverage of FTX's collapse. Prior to CoinDesk, he was a reporter with Blockworks and a semiconductor analyst with IDC.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
