Following the U.S. Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin ETFs on January 10, some South Korean brokerage firms, including Samsung Securities and Mirae Asset, have suspended transactions for foreign spot Bitcoin ETFs. This move comes after a warning from South Korea’s financial regulator.
Major South Korean securities companies have taken preventive measures by suspending brokerage services for foreign spot Bitcoin ETFs, including those in Canada and Germany, in response to the financial watchdog’s advisory notice.
The South Korean Financial Services Commission (FSC) cautioned that local securities firms providing brokerage services for spot Bitcoin ETFs traded on foreign exchanges might violate the government’s virtual assets and capital market laws.
According to local news source Dailian, the list of firms that have halted foreign spot Bitcoin ETF transactions features significant players like Samsung Securities and Mirae Asset Securities. Samsung Securities managed assets worth approximately $220 billion at the end of 2022, while Mirae Asset had around $215 billion under management as of June 2023.
Mirae Asset Securities confirmed the suspension of new transactions for foreign spot Bitcoin ETFs on their platform, citing the FSC’s announcement as the main reason for the suspension. The spokesperson highlighted concerns that trading in foreign spot Bitcoin ETFs could be interpreted as illegal by local brokerage firms. Meanwhile, trading in foreign Bitcoin futures ETFs continues unaffected by the FSC’s warning.