In a recent briefing, Kim Joo-hyun, the Chairman of the Financial Services Commission (FSC), firmly stated that trading Bitcoin spot Exchange-Traded Funds (ETFs) is currently impossible under South Korea’s Capital Market Law. Additionally, the FSC emphasized that it will maintain strict limitations on financial companies holding or purchasing virtual assets.
This announcement is a measure for the stability of financial companies and the protection of investors, considering the highly volatile nature of virtual assets. Kim So-young, Vice Chairman of the FSC, expressed concern that if financial companies were to hold virtual assets, it could pose a serious risk to financial stability.
Meanwhile, the industry suggests that the institutionalization of virtual assets is only a matter of time, considering their widespread adoption and the upcoming implementation of the ‘Virtual Asset User Protection Law’ in July. Consequently, there is an active discussion and calls for a review of the FSC’s stance on virtual asset regulation.