Crypto News – Korean Asset Managers Told to Follow 2017 Rules Banning Crypto Investments
Crypto News – The Financial Supervisory Service (FSS) of South Korea has reportedly directed domestic asset management firms to revise their exchange-traded funds (ETFs) and reduce exposure to crypto-related companies, including giants like Coinbase and Strategy, according to a new report by The Korea Herald.
The FSS issued the guidance verbally earlier this month, urging firms to align with the Financial Services Commission’s (FSC) 2017 administrative rules. These longstanding guidelines prohibit regulated financial entities from holding, buying, or making equity investments in virtual assets.
Industry Pushback and Regulatory Friction
This sudden directive has sparked criticism from local financial institutions, who argue that it creates an unequal playing field. Retail investors in South Korea still have access to U.S.-based crypto ETFs, even as institutional options remain restricted.
One unnamed FSS official stated that firms are expected to follow current laws until new regulations are officially adopted—despite recent regulatory shifts in the U.S. and South Korea.
South Korea’s Crypto Policy in Transition
Under the leadership of newly elected pro-crypto President Lee Jae Myung, South Korea has begun relaxing its hardline stance. The country is moving toward allowing spot crypto ETFs and developing Korean won-based stablecoins to boost the local market.
As of late 2024, over 18.25 million Koreans were reported to hold digital assets, making the country one of the largest retail crypto markets in the world, with a strong focus on altcoin trading.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
