According to a report from “The Block”, several major securities firms in South Korea have suspended their brokerage services for Bitcoin spot ETFs today (12th) following a warning from the country’s financial regulatory agency. This includes ETFs from Canada and Germany as a precautionary measure in response to the warning issued by the country’s financial regulatory agency.
The Financial Services Commission (FSC) of South Korea stated in today’s announcement, “Domestic securities firms providing brokerage services for overseas-listed Bitcoin spot ETFs may violate the government’s existing position on virtual assets and capital market laws.” This notice may be a response to the approval of Bitcoin spot ETFs in the United States.
According to local media “Dailian”, companies suspending trading of such ETFs include the securities division of Samsung Group and Mirae Asset Securities.
Mirae Asset Securities confirmed to The Block that the company and several others have halted new trades of foreign Bitcoin spot ETFs on their platforms. A spokesperson for Mirae Asset Securities mentioned that the FSC’s announcement is the main reason for the trading suspension, adding that local brokers are concerned that existing foreign Bitcoin spot ETF products may be interpreted as illegal.
Foreign Bitcoin futures ETFs were not mentioned in the FSC’s warning and seem to still be trading on multiple platforms. The spokesperson for Mirae Asset stated, “There is no discussion yet about stopping (Bitcoin futures) ETFs.”
Meanwhile, the FSC has left room for further discussion in the announcement. The regulatory agency indicated that as the country continues to formulate regulations regarding cryptocurrencies, it plans to further study this issue.