The Office of the President of the Republic of Korea is challenging the Financial Services Commission's (FSC) stance against spot Bitcoin exchange-traded funds (ETFs).。The FSC issued a warning about trading U.S. spot Bitcoin ETFs after the Securities and Exchange Commission (SEC) approved the spot Bitcoin ETF, about a week after the South Korean president's office took the step.。

The Office of the President of the Republic of Korea urged the FSC to adopt a more flexible approach, rather than a clear "yes" or "no," or an indication that the regulatory landscape may change.。

Review the FSC's warning

As an important financial regulator in South Korea, the FSC recently issued a warning against domestic securities firms trading or acting as agents for overseas-listed Bitcoin ETFs, citing possible violations of the Capital Markets Act.。

However, the South Korean president's office has asked the FSC not to take a rigid stance and explore the possibility of adapting to global developments.。Tae-yoon Sung, director of the Presidential Policy Office, stressed the need for foreign practices to be evaluated for adoption in the Korean legal system.。

In addition, the Office of the President of the Republic of Korea also stressed the need for appropriate adjustments to the law。While taking into account international practices, it is also important to prevent potential side effects or risks involving financial products and the economy.。

Investor Perspectives and Market Trends

Despite the SEC's recent approval of a spot Bitcoin ETF, South Korea's financial services regulator rejected the deal.。The FSC clarified that it does not allow cryptocurrencies to be listed and traded on its domestic financial market.。

Regulators are concerned that brokerage activities related to overseas-listed spot Bitcoin ETFs may violate the Capital Markets Act.。In addition, the FSC wants to take a cautious approach to aligning these activities with South Korea's regulatory framework.。

The lack of a legal basis for recognizing virtual assets in South Korea complicates the issue, making it challenging for the FSC to allow crypto ETFs to be listed and traded indirectly through domestic securities firms.。

Last week, the SEC approved 11 bitcoin ETFs, marking a historic decision to allow spot bitcoin ETFs to list on major U.S. exchanges.。SEC Chairman Gary Gensler clarified that the mandate specifically relates to holding an exchange-traded product that is a non-securities commodity, in this case Bitcoin.。