South Korea’s Presidential Office has taken a proactive stance regarding the trading of Bitcoin exchange-traded funds (ETFs).
The South Korean financial authority was urged by the office of the president of South Korea to reevaluate the prospect of allowing spot Bitcoin (BTC) exchange-traded funds (ETFs) to be traded in the nation.
Formerly, South Korean businesses were forewarned by the regional Financial Services Commission that brokering transactions in overseas spot Bitcoin ETFs might be against capital market regulations.
The announcements of multiple local companies selling overseas exchange-traded funds based on Bitcoin led to a stop. The South Korean Financial Services Commission (FSC) was requested by the Office of the President of the Republic of Korea to hold off on releasing any “do” or “don’t” directions regarding ETFs on January 18.
The chief of the presidential administration’s political department, Tae Yoon Seong, stated:
“We are trying to make appropriate changes in our country’s legal system or consider whether what happens abroad can be accepted in our country.”
Simultaneously, Singapore, another Asian nation, had previously objected to the issuing of spot Bitcoin exchange-traded funds. Even though the investment product was permitted in the US, the Monetary Authority of Singapore (MAS) declared that it would not allow the instrument for retail investors.
However, Retail investors in Singapore have access to bitcoin exchange-traded funds listed abroad. Furthermore, new regulations about digital asset commingling services are anticipated to be introduced by the Financial Intelligence Unit (FIU).
According to an FIU spokesman, talks started in Korea after US bans on cryptocurrency mixers were placed last year. A final ruling on this kind of enforcement is anticipated sometime soon, though.
