U.S Bitcoin ETFs Could Breach South Korean Local Law, Says Regulator

• South Korea's Financial Regulator Contends U.S. Bitcoin ETFs May Violate National Laws
• Cryptocurrency: A Commodity not Legal Tender
• South Korean Authorities Planning Cryptocurrency Regulations
• Vanguard's Stance on Bitcoin ETFs in the U.S.

South Korea's Financial Regulator Contends U.S. Bitcoin ETFs May Violate National Laws

The Financial Services Commission (FSC) of South Korea, the country's primary entity for financial regulation, recently issued a statement asserting that U.S. bitcoin ETFs listed recently could potentially infringe upon Korean laws. According to the regulator, the domestic brokerage of a U.S.-listed bitcoin spot ETF by Korean securities firms may potentially conflict with the nation's Virtual Asset User Protection Act and the Capital Markets Act. However, the regulator did not provide further clarification on this matter.

Cryptocurrency: A Commodity not Legal Tender

Back in 2017, Lee Ju-yeol, the governor of The Bank of Korea, labeled cryptocurrencies as commodities rather than legal tender. He also underscored the necessity for regulatory control in this domain. Further review from the FSC is in the pipeline, according to the commission's notice. The chair of the SEC, Gary Gensler, is due to convene with his Korean counterpart in Washington, DC, later this month.

South Korean Authorities Planning Cryptocurrency Regulations

In the recent past, South Korean officials have declared plans to formulate regulations that would mandate the disclosure of public officials' crypto holdings.

Vanguard's Stance on Bitcoin ETFs in the U.S.

Meanwhile, in the U.S., Vanguard, a major global investment management company, has chosen not to provide spot bitcoin ETFs, including those from BlackRock's iShares Bitcoin$42,260 -0.64% Trust (IBIT) and Grayscale Bitcoin Trust (GBTC), on its platform. The investment firm attributes this decision to a perceived discord with its investment portfolio strategy.

Edited by Jonathan Stoker