After the US SEC approved exchange-traded funds (ETFs), the Korean presidential office pleaded with the Financial Services Commission to change its mind about ETFs.
The President’s Office is requesting that the Financial Services Commission (FSC) of South Korea reevaluate its ban on trading spot Bitcoin ETFs located in the US, which came only one week after the FSC issued a similar warning.
A local report from Maekyung states that on January 18, the Yongsan Presidential Office, which is also known as the Office of the President of the Republic of Korea, requested that the FSC avoid issuing a “do” or “not” direction regarding ETFs. The chief of the presidential policy office, Tae-yoon Sung, remarked in an approximate translation:
“Our country’s legal system needs some tweaks, or maybe we should just look at international events and see if they’re acceptable here.”
According to Sung, South Korea is considering various low-risk components of the program in addition to the risks linked to trading ETF assets.
In a concise press release on January 12, the FSC—a leading financial regulator in South Korea—suggested that domestic securities firms “may violate” the Capital Markets Act, which aims to promote financial innovation and fair competition in the country’s capital markets, by trading or brokering spot Bitcoin ETFs listed overseas.
The country’s crypto regulatory framework is still in its early phases, according to the statement, which added that it would examine the legislation in light of developments elsewhere.
Reportedly, new laws regarding digital asset mixing services are in the works at South Korea’s Financial Intelligence Unit (FIU).
The talks reportedly began in Korea when the United States imposed penalties on crypto mixers, as stated in local news from January 15th, citing a FIU official. Nevertheless, a definitive decision about such enforcement is not anticipated in the near future.
Mixing services for cryptocurrencies allow users to move their funds between several chains, which increases anonymity and decreases tracking. Consequently, the Financial Intelligence Unit (FIU) of South Korea plans to combat criminal money laundering enterprises that use mixers.
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