South Korea’s President Office Asks FSC to Reconsider Spot Bitcoin ETF Approval
Since the approval of spot Bitcoin ETF applications in the United States, regulators in various nations are revisiting their stance on the product. The President’s office in South Korea has initiated a directive for the Financial Services Commission on this matter.
According to media reports, the office of the President has asked FSC officials to reconsider their anti-ETF stance following the approval of various spot Bitcoin ETFs in the United States.
The Yongsan Presidential Office has requested FSC regulators to avoid issuing directives regarding ETFs. Tae-yoon Sung, the head of the presidential policy office, told Maekyung that the office is working on making appropriate changes within the nation.
The official further stated that the policymakers in the nation are also considering whether the regulatory changes taking place in a foreign jurisdiction are also appropriate and suitable for the local cryptocurrency industry.
South Korea to Consider Low-risk ETF Offerings
The president’s office of the Korean Republic has noted that the regulators in the region are currently working on assessing the low-risk aspects of the ETF offering. It is important to note that FSC is the chief regulatory authority in the region that approves and supervises all ETF offerings.
The platform issued a press release on 12th January. The media briefing noted that the local securities firms or brokerages accessing overseas- spot Bitcoin ETFs may violate the Capital Markets Act.
South Korean Regulators are Working on Crypto Framework
This act deals with financial innovation and ensuring fair competition in South Korean financial markets. The platform has also noted that the regulatory agencies working on the cryptocurrency framework in the region are still in the development stage and are going to review regulations as policies that are created in foreign territories.
The Financial Intelligence Unit (FIU) is also working on providing regulatory clarity on cryptocurrency mixing services.
Regulatory Actions Against Crypto Mixers
An FIU regulator recently talked about the matter of cryptocurrency mixers. The official noted that US regulators have introduced sanctions against crypto mixers. However, he retained that a final ruling on the matter is going to be issued presently.
It is important to note that crypto mixers are programs that allow cryptocurrency investors to retain their privacy and obscure financial transaction history. This type of protocol makes use of privacy protocols such as stealth addresses and ring signatures among others.
At the same time, mixers also reduce traceability by distributing transactions across multiple chains. On this account, the FIU regulators have also raised concerns regarding the usage of crypto mixers and have been working on bringing sanctions against these protocols as a way to curb money laundering activities.
FSC officials issued another notification on 10th December noting that retail crypto investors are entitled to yield payment against digital asset deposits at an exchange.
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