South Korea’s Financial Authorities Decide Against Bitcoin ETFs Following U.S. Approval

SEOUL, South Korea - In a recent development, financial authorities in South Korea have announced their decision not to pursue the review or introduction of exchange-traded funds (ETFs) linked to the spot price of bitcoin. This decision comes despite the United States' recent authorization of such financial products, marking a significant divergence in the approach to cryptocurrency investments between the two nations.

According to Yonhap News Agency, the country has decided to observe trends without considering the brokerage of U.S.-based bitcoin spot ETFs or the introduction of local equivalents. This stance indicates a cautious approach by South Korean authorities towards integrating cryptocurrencies into conventional financial systems.

Last week, the U.S. Securities and Exchange Commission approved the trading of ETFs tied to the spot price of bitcoin, a move seen as a major milestone for cryptocurrency investments in the U.S. However, South Korea's Financial Services Commission (FSC) issued a statement last Friday stating that trading ETFs linked to bitcoin could be considered illegal under current South Korean regulations.

Adding to the cautious tone, Bank of Korea Governor Rhee Chang-yong addressed the issue in response to the U.S. decision on bitcoin ETFs. In a press briefing last week, Governor Rhee emphasized the risks associated with bitcoin as an investment asset, reinforcing the conservative stance of South Korean financial authorities towards cryptocurrency-related financial products.

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