South Korea has tightened its crypto regulations once again by banning Bitcoin ETFs and funds investing in virtual asset companies like Coinbase.
Reasons Behind the Bitcoin ETF Ban
South Korea decided to ban both Bitcoin spot and futures ETFs, marking another step towards stringent crypto regulations in the country.
Ban Extended to Virtual Asset Companies
The Financial Supervisory Service of South Korea confirmed the rejection of ETFs targeting companies with virtual asset-based business models. This resulted in many domestic asset managers pausing plans to submit similar ETF applications.
Impact on South Korea's Digital Market
Restrictive policies may hinder South Korea’s role in the evolving digital asset market, slowing down global crypto ETF adoption.
In conclusion, South Korea’s drive to protect investors through stringent measures might pose a barrier to its participation in the rapidly evolving digital asset market.
