South Korean regulators order to stop the country's ETFs from expanding their holdings of crypto stocks such as Coinbase

PANews reported on July 23 that according to the Korea Herald, the Financial Supervisory Service of South Korea recently issued verbal guidance to domestic asset management companies, requiring them not to expand the proportion of Coinbase, Strategy and other crypto companies' stocks in ETFs. The regulator reiterated that the "Emergency Measures for Virtual Currency" promulgated in 2017 is still valid. The administrative guidance clearly prohibits formal financial institutions from holding, purchasing virtual assets, obtaining related collateral and making equity investments.

Data shows that many products listed in South Korea currently hold more than 10% of their virtual asset-related targets. Among them, the "ACE US Stock Best-selling ETF" operated by Korea Investment Trust holds 14.59% of Coinbase. The Financial Supervisory Service's guidance is aimed at controlling the risk exposure of traditional financial products to virtual assets.