The Financial Supervisory Service (FSS) of South Korea is working with the Securities and Exchange Commission of the United States on the matter of Spot Bitcoin ETF. South Korea has joined the league of nations that are preparing to approve Bitcoin spot ETFs fashioned after US SEC listings.
For context, it is important to note that the SEC approved 11 Bitcoin spot ETFs on 10th January 2024. As per reports, FSS officials have plans to consult with SEC regulators on the matter.
FSS is responsible for examining and supervising financial institutions on behalf of the Financial Services Commission. FSS chief Lee Bok-Hyun drafted a plan for 2024 and presented it at the Financial Supervisory Service in Seoul on 5th February.
This plan included visiting major financial markets such as New York during Q2 to discuss the new investment vehicle in the pretext of South Korean markets. The FSS chief noted that the SEC’s approval of Bitcoin spot ETF has made a major impact on the global financial sector and regulations.
South Korean Bans Local Brokerage Firms from Accessing US-based Spot Bitcoin ETFs
Bitcoin spot ETF listings in the United States changed the dynamics around the product on an international scale. Investors hailing from European markets liquidated their shares from local ETFs and invested in US-listed alternatives.
Keeping the changes in view, South Korean regulators issued a warning to local firms against brokering spot ETF shares listed in the USA. At the same time, regulators also informed that a regulatory framework for processing and approval of local Bitcoin spot ETF is going through the review process.
South Korea also Imposed a Ban on Crypto Purchases via Credit Cards
In terms of cryptocurrency trading volume and awareness, South Korea is one of the leading regions in Asia-Pacific. The country has a history of following in the footsteps of US regulations with regard to financial policies surrounding the cryptocurrency sector. On this account, South Korean officials also imposed a ban on credit cards for all cryptocurrency purchases.
At the same time, local authorities also introduced a ban on cryptocurrency mixers on 15th January, 2024. This ban followed a few months after the Treasury Department of the United States imposed sanctions against Tornado Cash, one of the most popular crypto mixers in August, 2022 and adopted similar policies regarding Sinbad mixer in November, 2023.
Performance of BlackRock’s Bitcoin ETF
BlackRock listed iShares Bitcoin Trust at NASDAQ on 11th January this year alongside 10 asset management firms. Eric Balchunas, senior analyst at Bloomberg, recently noted that the Bitcoin spot ETF market has generated $3.19 billion in inflows as of 5th February.
The analyst noted that the numbers have ranked Bitcoin spot ETF revenues next only to the S&P 500 and Vanguard’s Total Stock Market ETF. YCharts have weighted iShares net flows against 3,109 ETFs currently listed in the US.
The results from the report have ranked the ETF listing in the top 0.16%. When compared against 10,000 ETF listings across the globe, Balchunas ranked BlackRock’s iShares in the top 0.02%.
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