Amid a landmark development for the market, South Korea has reaffirmed its crypto ban amid the US spot Bitcoin ETF approval yesterday. Indeed, the US Securities and Exchange Commission (SEC) broke a long-standing trend and approved 11 applications for the investment product.
However, the top financial regulator in South Korea has reiterated its stance on digital assets. Expressly, it has noted it will stand by its restriction of financial institutions from launching cryptocurrency ETFs, according to a report from local news outlet Kyunghyang.
South Korea Stands By Crypto Ban Amid Bitcoin ETF Hype
The financial sector has been inundated with talk surrounding Bitcoin ETFs. For much of the last few months, the investment product has captured headlines for the impending approval that would completely change the market. After a decade of rejections, the SEC greenlit a host of applications. Therefore, it approved the first spot Bitcoin ETFs in the United States.
However, that positive development will not likely deter other nations’ long-standing perspectives. South Korea has reaffirmed its crypto ban amid the US’ Bitcoin ETF approvals. The country currently restricts local finance institutions from owning or buying digital assets. Moreover, it does not allow these institutions to invest in businesses that offer cryptocurrencies.
An official of South Korea’s Financial Services Commission said that the US event would not lead to a reconsideration of the ban. Additionally, the report noted that the financial markets’ stability and investor protection inform the continued upholding of the ban.
The decision by the United States is certainly one that could have a ripple effect. The US had consistently stood against the investment product until the courts forced its regulatory agency to reconsider. Subsequently, Hong Kong lawmakers have even called for reconsideration of ETF legislation amid US approvals.