Bitcoin

<p>The South Korean Financial Services Commission (FSC) made an <a href="https://fsc.go.kr/no010101/81456?srchCtgry&#61;&amp;curPage&#61;&amp;srchKey&#61;&amp;srchText&#61;&amp;srchBeginDt&#61;&amp;srchEndDt&#61;" rel="noopener noreferrer nofollow">official announcement</a> on Friday (KST) stating that &#34;domestic securities firms brokering spot bitcoin ETFs that are listed on overseas markets may be considered a violation of the government&#39;s stance on virtual assets and the Financial Investment Services and Capital Markets Act.&#34; This stance refers to a press release published on Dec. 13, 2017 that outlined the government’s conclusion that virtual assets must be dealt with carefully.</p><h2 id="header-0">Future possibility</h2><p>However, this statement is not to be interpreted as a complete dismissal of the possibility that South Korea could adopt the ETF. The agency added that it would look into the issue thanks to a more stable regulatory landscape sweeping the country following the implementation of regulations on virtual assets like the Virtual Asset User Protection Act. Authorities are also taking into consideration the fact that other countries like the U.S. are adopting a more open stance.</p><h2 id="header-1">Market downturn</h2><p>Following the announcement, stocks related to the ETF in the South Korean market – which had surged on the news of a spot bitcoin ETF listing on the U.S. stock market a day ago – saw share prices drop within a day.</p><p>As of 10:04 a.m. on Friday, Woori Technology Investment was trading at KRW 7,650 ($5.82), down 4.61 percent from the day before, and Hanwha Investment &amp; Securities was down 9.09 percent to KRW 4,000. Both of these firms hold stakes in Dunamu, the operator of South Korea&#39;s largest cryptocurrency exchange Upbit.</p>

South Korean FSC prohibits domestic securities firms from brokering spot bitcoin ETF

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