South Korean regulators order halt to ETFs increasing holdings in crypto company stocks such as those of a certain exchange
According to ChainCatcher, The Korea Herald reports that the Financial Supervisory Service of South Korea has recently issued verbal guidance to domestic asset management companies, instructing them not to increase their holdings of stocks from certain exchanges, strategy firms, and other crypto-related companies within ETFs. The regulator reiterated that the "Emergency Measures on Virtual Currencies" enacted in 2017 remain in effect, and this administrative guidance explicitly prohibits formal financial institutions from holding or purchasing virtual assets, acquiring related collateral, or making equity investments.
Data shows that several ETFs listed in South Korea currently have more than 10% of their holdings in virtual asset-related targets. Among them, the "ACE U.S. Stock Bestseller ETF" managed by Korea Investment Trust holds a 14.59% stake in a certain exchange. The Financial Supervisory Service's latest guidance aims to control the risk exposure of traditional financial products to virtual assets.
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