South Korea’s Regulator: Bitcoin ETFs Could Violate Local Law

According to a statement released by the Financial Services Commission (FSC) of South Korea, the nation’s financial regulator, there may be a violation of Korean law by US Bitcoin ETFs that have recently been listed.

The FSC stated that Korean securities firms may potentially violate the Virtual Asset User Protection Act and Capital Markets Act by offering brokerage for a US-listed Bitcoin spot ETF without providing further information.

In 2017, the governor of the Bank of Korea, Lee Ju-yeol, declared that cryptocurrencies are considered commodities, not legal tender, and highlighted the importance of regulation in this area.

The FSC plans to conduct a thorough review of the matter. It has also been announced that SEC chair Gary Gensler will be meeting with his Korean counterpart in Washington, DC sometime this month.