The Financial Supervisory Service of South Korea is tightening control over crypto ETFs, raising concerns among investors and analysts.
Control Over Crypto ETFs in South Korea
The Financial Supervisory Service (FSS) of South Korea has recommended local asset managers to reduce their exposure to US-listed crypto ETFs, including those linked to Coinbase. Although this is not an official order, it aligns with the 2017 directives prohibiting regulated firms from engaging in crypto-related stocks.
Market Trends and Bitcoin Price Expectations
While there is an increasing interest in crypto ETFs globally, localized regulations hinder domestic investors. The current price of Bitcoin stands at around $118,500 per BTC, with a noticeable 'kimchi discount' reflecting the price discrepancy of cryptocurrencies in South Korea compared to global markets.
Global Trends and Domestic Restrictions
International financial firms continue to heavily invest in crypto ETFs, while South Korean firms face stringent limitations. This creates a paradox where local institutions struggle, while foreign investors prosper. Regulators are still discussing the implementation of a regulatory framework for future spot-based crypto ETFs.
Current measures taken by South Korean regulators highlight a significant disconnect between local and international investment regulation practices in the cryptocurrency arena.
