While the approval of spot Bitcoin ETFs in the USA made a big impact all over the world, it also mobilized the South Korean government.
South Korea's Financial Services Commission (FSC), the country's financial regulator, issued a new statement saying spot Bitcoin ETFs approved in the US could violate Korean law, local news agency Dailian reported.
The FSC noted possible violations and concerns by domestic securities firms in intermediating Spot Bitcoin ETFs listed abroad.
“The underwriting of foreign-listed Bitcoin spot ETFs by domestic securities firms may violate existing government positions on virtual assets and capital markets laws.”
While the FSC issued this warning, South Korean securities giants, including Mirae Asset Securities and Samsung Securities, took swift action from the FSC on January 12 to suspend brokerage services for spot Bitcoin ETFs listed in Canada and Germany.
The news also stated that securities firms that are not on the FSC's warning list continue to trade BTC futures ETFs.
“The suspension of Bitcoin futures ETFs was not discussed,” a Mirae Asset Securities spokesperson told The Block, citing the FSC's announcement as the main reason for the decision to suspend it.
*This is not investment advice.