{"id":36002,"date":"2024-01-11T13:00:11","date_gmt":"2024-01-11T13:00:11","guid":{"rendered":"https:\/\/coingrafter.com\/index.php\/2024\/01\/11\/south-korea-upholds-crypto-etf-ban-despite-us-green-signal\/"},"modified":"2024-01-11T13:00:11","modified_gmt":"2024-01-11T13:00:11","slug":"south-korea-upholds-crypto-etf-ban-despite-us-green-signal","status":"publish","type":"post","link":"https:\/\/coingrafter.com\/index.php\/2024\/01\/11\/south-korea-upholds-crypto-etf-ban-despite-us-green-signal\/","title":{"rendered":"South Korea Upholds Crypto ETF Ban Despite US Green Signal"},"content":{"rendered":"

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South Korea\u2019s Financial Services Commission (FSC) maintained a agency stance on the Crypto ETF ban regardless of the approval of Spot Bitcoin ETFs within the United States. The FSC officers asserted that the U.S. developments weren’t deemed important of their regulatory panorama. Moreover, they acknowledged that the U.S. ETF approval would change nothing within the South Korean crypto laws.<\/p>\n

Why Is South Korea Against Crypto ETFs?<\/h2>\n

The South Korea FSC expressed ongoing issues over illicit fund outflows, cash laundering, and potential speculative losses. The officers famous that these components contributed to their determination to uphold the December 2017 ban on monetary establishments from investing in crypto wouldn\u2019t be eased. This would certainly stop the appearance of Crypto ETFs within the nation.<\/p>\n

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An FSC official acknowledged that even the U.S. Securities and Exchange Commission (SEC) \u2018reluctantly\u2019 accredited Spot Bitcoin ETF<\/a> proposals. According to a South Korean information report<\/a>, the official mentioned, \u201cThe SEC also reluctantly allowed virtual asset ETFs on a limited basis in response to the court decision.\u201d<\/p>\n

Earlier, the regulatory physique actively solicited public suggestions till February 13, 2023, to advertise inclusivity in decision-making. This collected enter will likely be necessary in shaping their method to crypto, with a radical evaluation scheduled for the primary half of 2024.<\/p>\n

As a part of its inflexible mission to supervise the crypto trade, the FSC launched proposals geared toward reinforcing accountable practices and safeguarding customers. Among these proposals was a ban on bank card utilization for buying digital currencies. This indicated a transfer in direction of larger scrutiny of monetary devices related to the crypto market.<\/p>\n

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Additionally, the FSC lately advocated for stringent guidelines for cryptocurrency exchanges. The company proposed that these platforms must retailer a large 80% share of buyer deposits in chilly wallets. Furthermore, the FSC advisable imposing charges on buyer withdrawals to encourage monetary prudence.<\/p>\n

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Also Read: ARK Invest President Upbeat On Bitcoin ETF Pricing Even After Fee Waiver Ends<\/a><\/strong><\/p>\n

U.S. Mirrored The South Korea Crypto Regulations?<\/h2>\n

The nation actively applied two crypto regulatory plans lately. The first one is already in impact from 2023 whereas the second is slated to be applied in July 2024. Both plans had been designed to ascertain clear guidelines governing the issuance, itemizing, and delisting of cryptocurrencies.<\/p>\n

Furthermore, a South Korean official mirrored on the aftermath within the U.S. after main crypto market fluctuations. They identified that the nation prevented a \u201cmonetary sector collapse* by prohibiting monetary establishments from investing in digital property.<\/p>\n

They asserted that the aforementioned transfer by the U.S. mirrored South Korea\u2019s cautious method. Moreover, they famous that the Crypto ETF ban is critical since formally recognizing crypto investments may weaken the demand base of the home inventory market.<\/p>\n

Also Read: SEC Gives Nod to Spot Bitcoin ETF, Opens Door for Trading<\/a><\/strong><\/p>\n

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