South Korea’s financial regulator, the Financial Services Commission (FSC), said in a statement that the recently listed American Bitcoin (BTC) exchange-traded fund (ETF) may violate South Korean law.
According to regulators, a South Korean securities company’s domestic brokerage operations for the US-listed Bitcoin Spot ETF may violate South Korea’s Virtual Asset User Protection Act and Capital Markets Act.
In 2017, Bank of Korea Governor Lee Ju-yeol stated that crypto assets (virtual currencies) are not legal tender but a commodity, emphasizing the need for regulation in this area.
The FSC said in a statement that a further review will be carried out. U.S. Securities and Exchange Commission Chairman Gary Gensler is scheduled to meet with his South Korean counterpart in Washington this month.
Recently, South Korean authorities have said that they plan to introduce regulations that will make public the crypto holdings of officials.
In the US, Vanguard will no longer offer Bitcoin Spot ETFs on its platform, including BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC). It was determined.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Original text: South Korean Financial Regulator Says US Bitcoin ETFs May Violate Local Law