The Office of the President of the Republic of Korea has called on the Financial Services Commission (FSC) to reconsider its recent opposition to United States-based spot Bitcoin exchange-traded funds (ETFs).
This move comes just a week after the FSC issued a warning against trading these ETFs. The president’s office urged the FSC to avoid a strict “yes” or “no” stance on ETFs and to explore potential changes to the country’s legal framework or assess the suitability of accepting foreign practices.
Tae-yoon Sung, the head of the presidential policy office, emphasized the need for a thoughtful approach beyond the risks associated with trading ETF assets. The FSC, a key financial regulator in South Korea, had previously hinted at potential violations of the Capital Markets Act by domestic securities firms involved in trading or brokering overseas-listed spot Bitcoin ETFs. However, the regulatory body acknowledged the evolving nature of the crypto landscape and expressed a willingness to review regulations in light of international developments.
In addition to these developments, the Financial Intelligence Unit (FIU), another financial regulator in South Korea, is reportedly considering new regulations for digital asset mixing services. Discussions on this matter began following U.S. sanctions against crypto mixers. The FIU aims to address potential illegal money laundering activities facilitated by mixers, which help users maintain privacy and reduce traceability by transferring funds across multiple chains. While the final decision on enforcement is pending, South Korea continues to explore measures to counter illicit activities in the cryptocurrency space.
