• South Korea's Monetary Providers Fee (FSC) is not going to permit cryptocurrency ETFs, regardless of the SEC's approval of spot Bitcoin ETFs.
• FSC officers mentioned the ban on monetary establishments concerning digital currencies stays in place.

Regardless of the eventual approval of Spot Bitcoin ETFs by the US Securities and Change Fee (SEC), South Korea's regulatory strategy to those merchandise stays unchanged.

Officers from the Monetary Providers Fee of Korea (FSC) instructed native information retailers on January 11, a day after the SEC authorised the Spot Bitcoin ETF, that monetary establishments are prohibited from investing within the cryptocurrency. .

FSC officers say there was no change in coverage concerning cryptocurrencies and that the US transfer isn’t new. Spot ETFs are permitted in Hong Kong, Germany, Canada and different jurisdictions. However meaning South Korea will observe go well with.

Moreover, this regulation at present doesn’t permit monetary establishments to launch ETFs or take part within the shopping for, promoting, or buying and selling of digital currencies within the nation. The South Korean authorities stays resolute in its efforts to “stabilize monetary markets and defend traders,” the official mentioned.

Specifically, since December 2017, monetary establishments have been prohibited from holding and investing in digital currencies.

Will the SEC permit ETH, XRP ETFs?

The FSC official's feedback come because the crypto market's focus shifts from Bitcoin spot ETFs to Ethereum spot ETFs.

A number of issuers have already utilized to record spot ETFs based mostly on the world's second-largest cryptocurrency by market capitalization. There may be additionally hypothesis about what the SEC's approval means for XRP, which was declared to not be a safety by a US court docket in July 2023.

The market response despatched the value of Ethereum hovering above $2,600, whereas altcoins rose whereas Bitcoin hovered round $46,000. XRP worth rose above $0.60, making Ethereum Traditional one of many greatest gainers previously 24 hours after its worth rose greater than 35% on Thursday to commerce close to $30.