Vice Chair Kim So-young: "Difficult to Introduce Bitcoin Spot ETF"

Bitcoin Not Considered a Financial Investment Product
"Financial Companies Cannot Own Virtual Assets"

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The financial authorities have reaffirmed that brokering Bitcoin spot ETFs (exchange-traded funds) listed overseas may violate current laws.

On the 17th, Kim So-young, Vice Chairman of the Financial Services Commission, stated at a pre-briefing held ahead of the "Public Discussion with the People: Fourth Session, Financial Coexistence, Expanding the Ladder of Opportunity," "Basically, brokering spot ETFs currently goes against the government's basic stance and may violate the Capital Markets Act."

Vice Chairman Kim explained, "The possibility of violating the Capital Markets Act arises because the Act mentions the underlying assets of ETFs, but virtual assets are not currently included. Since virtual assets are not defined as financial products, they are excluded, making it difficult under current law."

She reiterated, "The existing government stance is that financial companies should not own virtual assets." Vice Chairman Kim pointed out, "The volatility of virtual assets is extremely high. If financial companies own virtual assets amid such price fluctuations, the soundness of financial institutions could become a significant issue."

She added, "The Act on the Protection of Virtual Asset Users related to investor protection will be enforced starting this summer. Overall, we are not proceeding with a review based on a fixed deadline or specific direction, but the Financial Services Commission's position is to carefully examine various situations going forward."

Meanwhile, on the 10th (local time), the U.S. Securities and Exchange Commission (SEC) approved 11 types of Bitcoin spot ETFs. On the same evening, the Financial Services Commission issued a press release stating, "Brokering Bitcoin spot ETFs listed overseas by domestic securities firms may violate the existing government stance on virtual assets and the Capital Markets Act," officially expressing its position.

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