Just a week after South Korea's Financial Services Commission (FSC) warned against trading in Bitcoin spot exchange-traded funds (ETFs), the administration is now calling on the regulator to reconsider its position.
According to a local report from Maekyong. Roughly translated, Tae Yoon Seong, head of the political department of the presidential administration, said:
“We are trying to make appropriate changes in the legal system of our country or consider whether what happens abroad can be accepted in our country.”
In addition to the risks associated with trading ETF assets, South Korea is evaluating other low-risk aspects of the offering, Sung said.
The FSC is the main financial regulator in South Korea, which on January 12 issued a brief press release suggesting that domestic securities firms trading or acting as intermediaries for spot Bitcoin ETFs registered overseas “may be in violation” of the FSC Act. capital markets, which focuses on financial innovation and equity. competition in South Korean capital markets.
However, the statement also noted that the country's cryptocurrency regulatory regime is still at an established stage and will review regulations as events develop overseas.
Related: South Korea Excludes NFTs and CBDCs from Cryptocurrency Interests Mandate
Meanwhile, another South Korean financial regulator, the Financial Intelligence Unit (FIU), is reportedly planning to introduce new rules regarding digital asset mixing services.
According to a local report on January 15, an FIU official said discussions began in Korea when the US imposed sanctions on cryptocurrency mixers. However, a final decision on such enforcement is not expected in the near future.
Cryptocurrency mixing services help investors maintain privacy and reduce traceability by moving funds across multiple chains. As a result, the South Korean FIU intends to combat illegal money laundering operations through mixers.