South Korean regulators call for limits on ETF holdings of crypto companies such as Coinbase

Odaily Planet Daily News: The Financial Supervisory Service of South Korea recently issued verbal guidance to domestic asset management companies, asking them not to expand the proportion of crypto company stocks such as Coinbase and Strategy in ETFs. The regulator emphasized that the "Emergency Countermeasures for Virtual Currency" issued in 2017 is still valid. The document prohibits formal financial institutions from directly holding virtual assets, obtaining related collateral or making equity investments. Data shows that many ETFs in South Korea have now increased the proportion of virtual asset-related targets to more than 10%, among which the "ACE US Stock Best-selling ETF" has a holding ratio of Coinbase of 14.59%. This regulatory guidance aims to limit the risk exposure of traditional financial products to virtual assets. The Korea Herald