Despite the Spot Bitcoin ETF being approved in the United States, South Korea remains firm on its Crypto ETF ban. The reasons are concerns about illegal fund flows, money laundering and potential speculative losses. This article will explain why South Korea maintains the ban and how this relates to crypto policy in the United States.
Immutable Decisions
When the United States gave the green light to a Bitcoin Spot ETF, many hoped that South Korea would follow its lead. However, South Korea's FSC (Financial Services Commission) remains its stance. They stated that the US decision will not affect crypto regulations in South Korea.
Also read: What is a Bitcoin ETF? Read the complete explanation
FSC concerns
South Korean FSC officials expressed their concern over illegal fund flows, money laundering and speculative risks in the crypto world.
They feel that these factors are compelling reasons to continue banning financial institutions in the country from investing in crypto. This is why South Korea continues to ban Crypto ETFs.
Correlation with the US
Although the US has finally allowed a Spot Bitcoin ETF, there are doubts in it. South Korean FSC officials said that even the US "reluctantly" approved a Bitcoin ETF. They believe that this reflects the uncertainty surrounding crypto, even in the US.
Previous Delays
South Korea has received public input to better regulate crypto. They plan a comprehensive review in the first half of 2024 based on that feedback.
By adopting a cautious approach, they hope to protect crypto investors and ensure strict compliance with regulations.
Why is South Korea so strict?
South Korea's FSC has proposed strict rules for crypto exchanges. This includes storing most customer funds in cold wallets and customer withdrawal fees to encourage wise financial policies.
The FSC has also taken other steps to control crypto. They want to ensure that stricter rules are implemented to protect investors and combat illegal activity.
Unlike the US, which has allowed more flexibility when it comes to crypto, South Korea continues to take a more cautious approach. They believe that this way, they can protect their investors and prevent potential risks.
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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates
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