South Korean Securities Firms Halt Bitcoin ETF Trades on Regulatory Concerns

Table of Contents

• Broker Suspensions
• Regulatory Concerns
• Upcoming Crypto Regulation
• Twitter

Two major South Korean securities firms have suspended transactions for foreign spot Bitcoin exchange-traded funds (ETFs) following guidance from the country’s financial regulator. https://www.fsc.go.kr/no010101/81456

Broker Suspensions

Samsung Securities and Mirae Asset Securities – which manage around $220 billion and $215 billion in assets respectively – halted Bitcoin ETF trades. Mirae Asset Securities confirmed the suspension, citing the Financial Services Commission’s (FSC) announcement here as the reason.

Regulatory Concerns

The FSC – South Korea’s top financial regulator – indicated that securities firms brokering overseas-listed Bitcoin spot ETFs could be violating the country’s cryptocurrency policies and Capital Markets Act.

While the U.S. SEC approving Bitcoin ETFs does not impact the FSC’s stance, they will maintain the ban on South Korean financial institutions launching their own crypto ETFs.

The suspensions only impact spot Bitcoin ETF trades, and not foreign Bitcoin futures ETFs which were not mentioned in the FSC’s announcement.

Upcoming Crypto Regulation

South Korea is developing a two-part crypto regulation policy. The first part – the Act on the Protection of Users of Virtual Assets – aims to regulate crypto markets for investor protection, coming into effect from July.

The second part will address rules governing the issuance, listing and delisting of cryptocurrencies.

Twitter

South Korean securities firms suspend Bitcoin ETF trades amid regulatory concerns – https://twitter.com/Althalla_/status/1248815837395288583

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