Bitcoin

<ul class="wp-block-list">
 <li>South Korea bans ETFs tied to crypto firms like Coinbase, citing strict 2017 regulations and investor protection.&nbsp;&nbsp;</li>  
 <li>Legal experts criticize South Korea’s FSS for blocking crypto ETFs without clear legal backing or transparent guidelines.&nbsp;&nbsp;</li>  
 <li>A new Virtual Asset Committee aims to reshape South Korea's crypto oversight amid rising global crypto adoption.&nbsp;&nbsp;</li> 
</ul>  
<p>South Korea's Financial Supervisory Service has <a href="https://www.hankyung.com/article/2024112037775" rel="noopener noreferrer nofollow">blocked</a> the launch of exchange-traded funds tied to cryptocurrency companies. This decision reinforces the government’s restrictive stance on digital asset investments.</p>  
<p>Yesterday, reports from local media indicated that the FSS had prohibited asset managers from introducing ETFs. The policy is grounded on a 2017 government order that bans financial firms from participating in activities related to virtual assets.&nbsp;</p>  
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  https://twitter.com/Crypto_TownHall/status/1859373722492096635
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<h2 class="wp-block-heading" id="h-bitcoin-etfs-remain-prohibited"><strong>Bitcoin ETFs Remain Prohibited</strong></h2>  
<p>The FSS has also maintained its ban on <a href="https://cryptonewsland.com/97555-bitcoin-price-unlocked-expect-98000-shortly/" rel="noopener noreferrer nofollow">Bitcoin</a> spot and futures ETFs. These restrictions align with the South Korean Capital Markets Act, which limits cryptocurrency-related investment products. This policy effectively sidelines institutional investment opportunities in the country.</p>  
<p>Asset management firms have faced significant challenges due to these restrictions. In addition, one firm revealed its plans to launch a Coinbase-focused ETF were stalled indefinitely. According to a representative, the firm is prepared to proceed but requires regulatory approval.</p>  
<p>Other companies have also reconsidered their plans for ETFs. One firm cited the rejection by FSS of similar products as a reason for its hesitation. Industry participants have expressed frustration over the lack of clear regulations.</p>  
<h2 class="wp-block-heading" id="h-legal-and-market-concerns"><strong>Legal and Market Concerns</strong></h2>  
<p>Legal experts have questioned the FSS's approach, calling it overly cautious and legally unsupported. Jung Soo-ho, a partner at Renaissance Law Firm, stated that investments in publicly traded firms like <a href="https://www.coinbase.com/" rel="noopener noreferrer nofollow">Coinbase</a> do not violate the Capital Markets Act. He argued that the FSS's actions represent regulatory overreach.</p>  
<p>Despite the rising demand for Bitcoin in South Korea, the FSS shows no signs of easing its stance.&nbsp;</p>  
<p><strong>New Committee to Address Crypto Oversight</strong></p>  
<p>The Financial Services Commission plans to establish a Virtual Asset Committee to oversee crypto-related matters. This committee will focus on the approval of spot crypto ETFs and corporate accounts for crypto investments. It includes government representatives and private sector members, aiming to provide a comprehensive framework.</p> 
<p>The post <a href="https://cryptonewsland.com/south-koreas-fss-reinforces-ban-on-bitcoin-etfs/" rel="noopener noreferrer nofollow">South Korea’s FSS Reinforces Ban on Bitcoin ETFs, Citing Investor Protection Concerns</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

South Korea’s FSS Reinforces Ban on Bitcoin ETFs, Citing Investor Protection Concerns

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