South Korea urges asset managers to limit crypto exposure

The Financial Supervisory Service (FSS) has advised South Korea to prevent excessive exposure to crypto companies.

According to a Wednesday Report Through the Korea Herald, the FSS has orally taught local managers of the owner to limit exposure to crypto companies. The report noted Coinbase and Strategy Stock as examples.

The guide has been reported informal and advice. The effect is also limited because passive Funds exchanged by exchange (ETF) Running in South Korea No. It is easy to remove specific stocks without the changes approved by index providers.

“Since we monitor the index directly, removing a stock without an index change can result in major monitoring errors. We understand regulatory bearing but cannot respond immediately,” said an unidentified fund manager in the Korea Herald.

FSS recognized these limitations and made it clear that its comments were meant to encourage ETF design care until new policies were introduced. However, some industry participants have also raised concerns about the fairness of such expectations.

The Korea Herald noted that industry resources have noticed that investors are gaining exposure to crypto companies through listed funds exchanged by the exchange (ETF). Consequently, hope that only limits to domestic products may not be fair to local asset managers. Said an unidentified industry source:

“The restriction on domestic ETFs will not stop the capital flows. Investors have already wandered into these policies through US products. It is suspicious if such regulation is effective even.”

Related: South Korean youths turn to crypto because of desperation

Crypto stocks are famous for Korean asset managers

Comments follow an increase in South Korea ETF appropriations in crypto -related stocks. Ace US Stock Bestseller ETF of Korea Investment Management Holding Coinbase at 14.6%; The Koact Nasdaq Growth Active ETF Holding Coinbase (7.4%) and approach (6%), which covers 13.4%.

Similarly, Koact Global AI & Robotics Active ETF Allocates 10.3% in Coinbase, and the Timefolio Nasdaq 100 active ETF Provides A 11% exposure to crypto -associated stocks.

Related: 27% of Koreans aged 20-50 hold crypto, 70% more investment: Report

FSS also pointed out that local financial institutions cannot hold, obtain, invest or move as collateral any cryptocurrency. “Although both US and Korean regulators show signs of avoiding crypto policies, no concrete laws or guidelines have been implemented,” said one officer, added:

“Until the new frameworks are in place, existing policies must be followed.”

Comments follow Increasing the openness of the regulation shown by South Korea regulators. Earlier this month, the South Korean ministry suggested and suggested by startups Lifting restrictions that do not include crypto companies from accessing various tax breaks and financial support initiatives.

In addition, major shares South Korean banks climb this month following trademark filings for stablecoinsSigned a growing institutional interest in digital possessions. This development also followed the central bank of South Korea Posting the test of a central digital bank currency In the midst of increasing support for stablecoins.

Bank of Korea Deputy Governor Ryoo Sangdai said in June that he was aimed at Banks to be the main issue of Stablecoins In the country, there is a gradual expansion of the other sectors. Reports from last month also indicate that eight central banks of South Korea are Expected to conquer to launch a stablecoin Pegged to win the country’s money by 2026.