- SEC approves several spot Bitcoin ETFs, a significant shift in US policy.
- South Korea reaffirms its ban on cryptocurrency ETFs.
- South Korea’s crypto ban aims to protect market stability and investors.
The US Securities and Exchange Commission (SEC) recently marked a watershed moment by approving several spot Bitcoin ETFs. In stark contrast, South Korea decided to reaffirm its ban on crypto ETFs.
Despite its reputation as a technology and crypto leader, South Korean authorities maintain a strict ban on institutional investment in crypto.
South Korea’s Unwavering Stance on Crypto ETFs
South Korean regulators reiterated their position in light of the recent SEC approval of Bitcoin ETFs in the U.S.. On Thursday, January 11, the Financial Services Commission (FSC) stated that the U.S. won’t change its approach.
The FSC emphasizes that the allure of high returns in crypto is juxtaposed with significant risks, requiring a protective regulatory framework. The policy, in effect since December 2017, maintains that cryptocurrencies are not recognized as financial assets within the country. This means that financial institutions are barred from engaging in cryptocurrency investments.
South Korea’s Developing Crypto Framework
South Korea’s regulatory framework is undergoing a gradual evolution. The country is developing a comprehensive two-part crypto regulation framework, with the first part set to come into effect in July 2024.
This part of the legislation focuses on the intricacies of cryptocurrency trading and ownership, aiming to create a structured and transparent environment for crypto activities. Concurrently, work is underway on the second part, which will establish clear guidelines for issuing, listing, and delisting cryptocurrencies.
On the Flipside
- Despite South Korea’s firm stance, the global trend leans towards greater integration of cryptocurrencies. The U.S. and other nations are increasingly acknowledging the potential of digital assets.
- South Korea is a major player in the crypto market, especially regarding retail ownership. However, several high-profile crashes, including the Terra-Luna debacle, have prompted a swift regulatory response.
Read more about South Korea’s biggest failed crypto venture:
The Collapse of LUNA: What Happened and Why?
Read more about the SEC’s mismanagement of ETF approvals:
SEC’s Bitcoin ETF Handling Draws Criticism, FBI Probe