MEMETOON

Source: (Korea) Decenter : https://decenter.kr/NewsView/2D43V1JIW5/GZ0101Bitcoin spot ETFs were listed on the U.S. stock market on the 11th (local time), but the nation&#39;s Financial Services Commission said it would not allow Koreans to trade bitcoin spot ETFs. It has been a while since the listing of bitcoin spot ETFs in the U.S. became a fait accompli, but it announced its official position belatedly. There was also a skit in which domestic investors&#39; investment in bitcoin futures ETFs, which had no previous restrictions on the financial authorities&#39; expression of such opinions, was once suspended. With virtual assets already rapidly positioned in the institutional financial market, there is no clear legal basis and no future roadmap. Critics say that Korea is already lagging behind in competition, unlike foreign financial companies and companies that are expanding their scope in the virtual asset market. The virtual asset market spring (&#34;Crypto Spring&#34;) is expected to be postponed indefinitely in Korea alone. The reason why the Financial Services Commission said on the 12th that it would not allow Koreans to trade bitcoin spot ETFs was that &#34;issuance of bitcoin spot ETFs or brokerage of bitcoin spot ETFs abroad may violate existing government positions and capital market laws.&#34; Here, the existing government position refers to emergency measures related to virtual currency released by the Financial Services Commission in 2017. At that time, the Financial Services Commission announced a policy to ban financial institutions from holding, purchasing, acquiring collateral, and investing in shares of virtual currency, but it only reiterated its position that it would adhere to the existing principles even after seven years. Industry sources point out that the Financial Services Commission&#39;s judgment is anachronistic. Unlike seven years ago when the Financial Services Commission issued guidelines, Bitcoin&#39;s status as an asset has become so solid that spot ETFs have emerged in the U.S. Even the U.S. Securities and Exchange Commission (SEC), which has rejected spot ETFs of Bitcoin since 2013, changed its position as the private sector has a reasonable infrastructure. &#34;It is regrettable that the Financial Services Commission&#39;s position is still in 2017,&#34; said Jeong Seok-moon, head of the Korbit Research Center. &#34;For the development of the Korean financial industry, the authorities should make a judgment based on a broader perspective.&#34; Standard Chartered (SC) predicted that up to 100 billion dollars (about 131 trillion won) will flow in this year alone if the spot ETF of Bitcoin is approved. Even though a &#34;big market&#34; has been opened, domestic securities companies and investors have to watch. Another problem is that the legal basis for the Financial Services Commission&#39;s existing position is unclear. South Korean securities firms were confused by starting and stopping trading immediately after Bitcoin&#39;s spot ETF was listed in the United States. It is proof that there are no clear legal guidelines that companies should refer to. Kwon Oh-hoon, a partner lawyer at Cha &amp; Kwon&#39;s law office, said, &#34;Although the U.S. law and Korean law are not the same, I don&#39;t think there is any reason to ban Bitcoin spot ETFs under domestic law. The government that securities companies cannot hold Bitcoin should clarify a clear legal basis.&#34; Industry officials agreed that the authorities should look at the issue from an open perspective in consideration of the positive aspects of Bitcoin&#39;s spot ETF. Oh Tae-wan, CEO of INF Crypto Lab, said, &#34;The approval of Bitcoin&#39;s spot ETF will serve as an opportunity for the underprivileged in digital finance to easily access Bitcoin.&#34; This means that middle-aged and elderly people, who have been unable to use existing centralized virtual asset exchanges or decentralized exchanges (DEXs) with Bitcoin spot ETFs, will have an opportunity to easily invest in Bitcoin. &#34;Bitcoin ETFs will provide convenience for ordinary investors to invest safely without complex virtual asset purchase and storage processes, similar to gold ETFs,&#34; Tiger Research CEO Kim Kyu-jin said, pointing out that specific measures to regulate virtual asset ETFs should be prepared. &#34;Detailed decisions are needed, such as whether to allow domestic investors to invest directly in bitcoin ETFs created overseas or whether to create virtual asset ETFs separately in the domestic stock market,&#34; he said. &#34;Free economic activities should be encouraged at a time when domestic economic growth is more difficult due to aging issues,&#34; said Chung, head of the center. &#34;We hope that reasonable measures will be taken to keep pace with the changes of the times.&#34;MEME TOON twitter link : https://twitter.com/memetoonk/status/1747637380251853240

Financial Services Authority Repeats Its Position Only 7 Years Ago, Impairs Virtual Asset Competitiveness

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