At the start of the week, the long awaited ETF Bitcoin Spot has been approved by the US SEC. However, this approval is not unanimous among foreign regulators. On the South Korean side, these ETFs could well violate current laws.
South Korean regulators hit Bitcoin ETF
While the cryptocurrency ecosystem is lulled by the euphoria of the acceptance of the Bitcoin Spot ETFSouth Korean investors are not as cheerful.
In fact, on January 12, the Financial Services Commission of South Korea (FSC), has issued a warning that Newly Listed Bitcoin ETFs in the US May Violate South Korean Law.
Therefore, to access these ETFs, South Korean investors must turn to a domestic brokerage company. This aims to serve as an intermediary. However, the FSC points out this practice which could:
“Going against the government’s current stance on virtual assets, as well as the Capital Markets Act.”
Explain the warning.
However, However, this decision does not seem to have been finalized. Last July, the country adopted the “Virtual Asset User Protection Act”. Thus, this should prompt additional scrutiny and potentially revision of the law.
The president of the SEC, Gary Gensler, is due to meet his Korean counterpart later this month in Washington. This meeting could be an opportunity to clarify South Korea’s position on Bitcoin ETFs. Additionally, the two counterparts will be able to discuss the implications of the approval of Bitcoin ETFs in the United States for the Korean market.
This announcement from the FSC has created some uncertainty among cryptocurrency investors in South Korea. While some see Bitcoin ETFs as an attractive investment opportunity, others fear that approval of these financial products in the United States could create additional legal problems.
For his part, Gary Gensler will have to answer to the US Senate for the fiasco that was the SEC announcement. Indeed, a false announcement was published following the hack of the SEC account, creating significant movements on the markets.