- South Korea bans Bitcoin ETFs, citing investor protection, sparking regulatory criticism.
- Global crypto ETF adoption rises as South Korea enforces stricter investment rules.
- Restrictive policies may hinder South Korea’s role in the evolving digital asset market.
South Korea has kept its crypto regulations in check yet again when it banned Bitcoin spot and futures ETFs thereby blocking funds that invest in virtual asset companies like Coinbase.
According to Ki Young Ju, Founder & CEO of CryptoQuant, these restrictions aim to protect investors, but critics argue they are excessive and hinder the nation’s alignment with global trends in digital asset regulation.
Ban Extends Beyond Bitcoin to Virtual Asset Companies
The Financial Supervisory Service (FSS) recently confirmed the rejection of ETFs targeting companies with virtual asset-based business models. Asset management firms had planned to introduce ETFs focusing on businesses like Coinbase, a leading cryptocurrency exchange.
Despite being ready for immediate launch, these funds failed to gain approval. As a result, many domestic asset managers paused plans to submit similar ETF applications, c…
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