FSC Reaffirms Ban on Bitcoin Spot ETFs, Allows Futures Trading

South Korean financial authorities have reaffirmed their prohibition on domestic financial firms from facilitating bitcoin spot ETFs, citing concerns about potential violations of existing government stances and capital market laws. The Financial Services Commission emphasized the challenges in directly applying U.S. cases to the Korean legal system. While institutional financial companies are restricted from investing in virtual assets, trading in overseas Bitcoin futures ETFs remains unaffected. The authorities clarified their commitment to maintaining a close communication system to promptly convey any changes in their stance to the industry. South Korean securities firms had already ceased brokering Bitcoin spot ETFs listed outside the U.S., and some, like KB Securities, also prohibited the purchase of bitcoin futures ETFs and spot.

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