South Korea could ban brokering of US Bitcoin spot ETFs

South Korea’s financial regulator said on Friday that local securities firms brokering US spot bitcoin exchange-traded funds (ETFs) could be illegal, responding to the US approval of such ETFs this week.

The Financial Services Commission (FSC) stated that brokering overseas-listed bitcoin spot ETFs would likely violate the government’s stance on virtual assets and the Capital Markets Act. This comes after several spot bitcoin ETFs began trading in the US on Thursday, marking a major milestone for the crypto industry.

Read More News:
Crypto stocks plunge as inflation spikes overshadow Bitcoin ETF optimism

The FSC said it will continue reviewing regulations around investing in spot bitcoin ETFs. The statement signals that South Korea may ban local brokerages and investors from participating in the new US spot bitcoin ETF market.