The South Korean government is currently facing a decision on whether to allow spot Bitcoin ETFs to be traded in their country. The Financial Services Commission (FSC) has warned brokers against offering these newly listed US spot Bitcoin ETFs. However, the president’s office is urging the FSC to reconsider their stance and potentially incorporate foreign-listed products.
In a recent briefing, chief of staff for policy in the president’s office, Sung Tae-yoon, stated that the government believes there is a need to find the best way to incorporate these new ETFs and other markets into the local financial ecosystem. This suggests that the government is open to revisiting the matter and potentially allowing spot Bitcoin ETFs to be traded in South Korea.
The FSC, on the other hand, has a different outlook and has issued a warning to local brokerage firms about the potential violation of their current stance on virtual assets if they offer access to overseas listed spot Bitcoin ETFs. This stance is in line with the Capital Markets Act and the government’s view that they do not want to follow in the footsteps of the US and allow spot ETFs.
In a statement released earlier this month, the FSC stated that they are closely monitoring the situation and will take action against any violations. They also mentioned that other countries, such as Hong Kong, have stricter regulations in place for identifying ETFs.
It seems that the government and the FSC have differing opinions on the matter, and it remains to be seen what decision will be made. However, the president’s office is urging the FSC to review their stance and potentially allow spot Bitcoin ETFs to be traded in South Korea.