South Korean regulator urges asset managers to limit crypto exposure

Key Points

1. The FSS verbally cited Coinbase and Strategy stock as examples of crypto firms to avoid excessive exposure in ETFs.

2. Passive ETFs in South Korea cannot easily remove specific stocks without index provider approvals, making immediate adjustments difficult.

3. Some South Korean ETFs already have significant exposure to crypto-related stocks, such as Coinbase and Strategy.

4. Despite regulatory advice, investors are bypassing restrictions by using U.S.-listed ETFs to gain crypto exposure.

5. South Korean regulators are showing signs of easing crypto rules, but no concrete laws or guidelines have been implemented yet.