TechFlow news — According to Bloomberg, South Korea is attempting to block substantial speculative capital from flowing into U.S. spot Bitcoin ETFs. The country's financial regulator, the Financial Services Commission (FSC), stated on Thursday that brokering such ETFs could violate the government’s current stance on virtual assets and its Capital Markets Act.
The statement caused confusion among investors and triggered a sharp decline in related stocks during early Friday trading, with Wizit Co.'s share price plunging as much as 13% at one point.
This move marks the first major regulatory caution in response to the U.S. Securities and Exchange Commission (SEC) approving around a dozen ETFs that directly hold Bitcoin earlier this week. South Korea, known for its enthusiasm toward crypto assets, passed a digital asset bill last year aimed at strengthening investor protection.
