South Korea’s Financial Supervisory Service (FSS) has instructed domestic asset management firms to modify their exchange-traded funds (ETFs) to comply with existing regulations restricting investments tied to cryptocurrency markets. The directive reinforces the Financial Services Commission’s (FSC) 2017 guidelines, which prohibit local ETFs from holding US-listed ETFs with crypto asset exposure.
An FSS spokesperson confirmed the regulatory stance remains unaffected by evolving crypto frameworks in the United States and other jurisdictions, emphasizing the nation’s commitment to institutional risk management. The move underscores South Korea’s persistent caution toward cryptocurrency investments amid global market developments, aiming to shield investors from volatility inherent in crypto-linked financial products.