South Korea's Financial Regulators Ban Cryptocurrency ETFs

According to Odaily, South Korea's financial regulatory authorities have prohibited the issuance of cryptocurrency exchange-traded funds (ETFs) for both spot and futures products. Additionally, they have rejected funds investing in cryptocurrency companies, including exchanges. A representative from an asset management company revealed that they have been preparing to launch a fund focused on virtual asset companies since the end of last year, but have yet to receive approval from local regulators. Meanwhile, an official from the Financial Supervisory Service (FSS) acknowledged the growing demand for Bitcoin investments. However, the official stated that unless there is a change in the current government policies, regulatory restrictions will remain in place. This stance reflects the cautious approach South Korean authorities are taking towards the rapidly evolving cryptocurrency market, balancing the increasing interest in digital assets with the need for regulatory oversight to protect investors and maintain financial stability.