South Korea Reaffirms Crypto Ban Amid US Bitcoin ETF Approval

In a major turn of events for the market, South Korea has reinforced its prohibition on cryptocurrency investment, even Amid a landmark development for the market, South Korea has reaffirmed its crypto ban amid the US spot Bitcoin ETF approval. Indeed, the US Securities and Exchange Commission's (SEC) decision to approve spot Bitcoin ETFs has not swayed South Korea's stance.

South Korea Reasserts Crypto Restrictions in Light of US Bitcoin ETF Approval. An official from South Korea’s Financial Services Commission (FSC) told local media that the SEC's approval has not prompted the country's regulator to reconsider its existing policy. According to An official of the country’s Financial Services Commission told local news outlet Kyunghyang that the approval of spot bitcoin ETFs in the U.S. is not an event that would trigger a policy change.

The South Korean regulator, FSC, bars domestic securities firms from offering overseas spot Bitcoin ETFs, affecting companies like Samsung Securities. The decision underscores the country's continued caution regarding digital assets. Since financial institutions in the country have been barred from investing in cryptocurrencies. Local sources have reported that the Financial Services Commission has been vigilant in enforcing these restrictions.

This firm stance highlights a divergence in regulatory approaches between the US and South Korea concerning cryptocurrency. While the US opens doors to Bitcoin ETFs, South Korea remains committed to its crypto ban, indicating a continued cautious approach toward the volatile digital asset market.