Brokerage of the newly approved US Bitcoin ETFs may be a violation of South Korean rules, according to the local regulator.
Domestic brokerage of US-listed Bitcoin ETFs in South Korea may be a violation of local rules, according to a statement by the Financial Services Commission (FSC), the country’s securities regulator. This includes potential conflict by Korean securities firms with the Virtual Asset User Protection Act and the Capital Markets Act, though the regulator did not further elaborate.
The FSC said it plans to further review its crypto rules as overseas regulation changes. This marks one of the first cautious responses from a major regulator since the US Securities and Exchange Commission delivered a landmark approval of 11 spot Bitcoin ETFs.
Despite the warning, South Korea is one of the largest crypto markets worldwide with the Korean won overtaking the US dollar as the largest fiat trading pair for cryptocurrencies for the first time last November, according to data compiled by CCData. Last year, a digital assets bill was also approved to strengthen investor protection.
