The nation’s financial regulator on Friday rejected the proposed introduction of U.S. spot bitcoin exchange-traded funds (ETFs) in the domestic market. The Financial Services Commission (FSC) said in a statement, "Any trading of the overseas-listed cryptocurrency ETFs may infringe upon the Capital Markets Act on related assets." An FSC official added that it would be difficult for Korea to follow suit as the two nations have different legal systems.

The FSC's decision was prompted by the approval of bitcoin-linked ETFs by the U.S. Securities and Exchange Commission. This marks the inclusion of virtual assets in the current financial markets, implying that, despite the stance of the Seoul government, Korea will have to increasingly prepare for this development. The recent U.S. decision will likely prompt global investors, previously skeptical of virtual assets, to pour a maximum of $10 billion into the cryptocurrency markets. From a mid- and long-term perspective, the total investment will........

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