South Korea Firmly Maintains Crypto ETF Ban Despite Approval of US Bitcoin ETF

Bitcoin ETF Approval Fails to Impress Korean Regulators, Leading to Cryptocurrency Ban

The recent approval of spot Bitcoin ETFs by the SEC has garnered widespread praise and excitement from investors and prominent figures in the industry. However, Korean regulators seem unimpressed by these achievements and have indicated their intention to ban cryptocurrencies in response.

The Financial Services Commission (FSC) of Korea, in an interview with a local news channel, expressed that the approval of spot Bitcoin ETFs in the United States is not a significant event for them. This lack of enthusiasm has prompted their decision to impose a ban on cryptocurrencies.

The main reason behind this prohibition is the regulators’ strong opposition to illegal outflows of domestic funds, money laundering, and the promotion of speculative behavior that can potentially lead to financial losses for investors.

To gather feedback on this proposed ban, the FSC has initiated a public feedback process that will continue until February 13. They consider this input from the public as crucial and will review it in the first half of 2024.

As part of their efforts to oversee and regulate the cryptocurrency industry, the FSC has also proposed additional measures. One of these measures is a ban on using credit cards to purchase digital currencies. Furthermore, the FSC has introduced rules to protect users of cryptocurrency exchanges.

These rules stipulate that exchanges must store a minimum of 80% of their customers’ deposits in cold wallets. Additionally, customers will be charged fees for withdrawing funds from their deposits. These measures aim to ensure the safety of investors and promote responsible practices within the crypto industry.

Tags: Crypto Regulations