According to a report from “The Block,” several major securities companies in South Korea have suspended their brokerage services for Bitcoin spot ETFs today (12th) following a warning issued by the South Korean 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 companies providing brokerage services for Bitcoin spot ETFs listed overseas 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 that have suspended trading of such ETFs include the securities department 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 announcement from FSC is the main reason for suspending trading, 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 appear to still be trading on multiple platforms. The spokesperson for Mirae Asset stated, “The discussion about halting (Bitcoin futures) ETFs has not been held yet.”
Meanwhile, FSC has left room for further discussion in the announcement. The regulatory agency noted that as the country continues to establish regulations regarding cryptocurrencies, it plans to further research this issue.