Korean Regulators Raise Concerns Over U.S. Bitcoin ETFs, Sparking Regulatory Debate
Jan 12, 2024
South Korea's Financial Services Commission (FSC) has expressed concerns that recently-listed U.S. bitcoin ETFs could violate Korean law if domestically brokered by Korean securities firms, citing potential conflicts with the Virtual Asset User Protection Act and the Capital Markets Act. The country has historically considered cryptocurrencies as commodities, not legal tender, and emphasised the need for regulation. Meanwhile, South Korean authorities are planning to introduce regulations requiring officials to disclose their cryptocurrency holdings for increased transparency, and SEC Chair Gary Gensler is set to meet his Korean counterpart in Washington, DC later this month. Vanguard has chosen not to offer spot bitcoin ETFs on its platform due to misalignment with its investment portfolio strategy.