South Korean Regulator Requires Investment Firms to Control Exposure to Crypto-Related Companies such as Coinbase and Strategy

By: theblockbeats.news|2025/07/23 12:42:14
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BlockBeats News, July 23rd, according to The Korea Economic Daily, the Financial Supervisory Service (FSS) of South Korea has recently instructed local asset management companies to adjust their Exchange-Traded Funds (ETFs) to restrict exposure to cryptocurrency-related companies such as Coinbase and Strategy. The regulatory agency stated that asset management companies need to comply with the administrative guidelines issued by the Financial Services Commission (FSC) of Korea in 2017, which prohibit regulated financial institutions from holding, acquiring, or investing in virtual assets.

This directive from the local regulatory agency has sparked complaints from domestic financial participants who believe it has created an unfair competitive environment, as retail investors can purchase U.S. ETFs by investing in cryptocurrency companies. An official from the Financial Supervisory Service stated that even if regulatory requirements in the U.S. and Korea change, institutions must adhere to existing guidelines until new regulations are enacted.

The Financial Supervisory Service is responsible for overseeing the South Korean financial industry, focusing on the daily practical supervision of various financial entities. It serves as the executive agency of the Financial Services Commission (FSC), the highest financial regulatory authority in Korea.

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