South Korean Firms Halt Spot Bitcoin ETF Services After Regulator Warning
Major South Korean firms, including industry giants Samsung and Mirae Asset, have suspended brokerage services for foreign-listed spot Bitcoin ETFs.
The move shared by a local news media outlet comes after the country’s financial regulator, the Financial Services Commission (FSC), issued a notice cautioning that facilitating trades of offshore spot crypto ETFs may violate existing government policies on virtual assets and capital market laws.
The suspension impacts recent spot Bitcoin ETFs listed in countries like Canada and Germany and traded via Korean brokerages. Services for bitcoin futures ETFs continue to operate.
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Samsung Securities and Mirae halted Spot Bitcoin ETF services
Samsung Securities, Mirae Asset Securities, and other large South Korean firms halted new spot bitcoin ETF transactions, citing the FSC’s announcement. They are concerned that existing foreign offerings could be seen as illegal.
- Mirae Asset spokesperson confirmed to The Block that Bitcoin futures ETF trading has not been impacted.
- The FSC notice focused specifically on spot ETFs.
- The suspension comes a day after an FSC official said the U.S. approval of spot Bitcoin ETFs would not prompt South Korea to reconsider its ban on local firms launching crypto ETFs.
The FSC plans further examination of the issue as part of the country’s evolving cryptocurrency regulations. The regulator left room for additional discussion in its notice.
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South Korea passed its first crypto regulations last year, going into effect this July. It is now drafting a second set of rules addressing token issuance, listings, and delistings.
The halt of spot Btcoin ETF services indicates major Korean financial players are treading carefully as the regulatory environment around cryptocurrencies develops. Both the regulators and industry participants seem interested in further analysis before making definitive moves in either direction.
For now, spot Bitcoin ETF access will be restricted, but the door remains open for revisiting these policy decisions down the line. The news comes at a time when the US SEC has approved all spot ETF applications in the country.
