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South Korean regulators have ordered ETFs to stop expanding their holdings in crypto companies such as Coinbase

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2025-07-23 02:20:58
On July 23rd, according to the Korea Herald, the South Korean Financial Supervisory Service recently issued verbal guidance to domestic asset management companies, asking them not to expand their holdings of crypto stocks such as Coinbase and Strategy in ETFs. The regulator reiterated that the "Emergency Measures related to Virtual Currency" issued in 2017 is still valid. The administrative guidance clearly prohibits regular financial institutions from holding, purchasing virtual assets, obtaining relevant collateral and making equity investments.
According to the data, the current holdings of virtual asset-related targets in many Korean-listed ETFs exceed 10%. Among them, the "ACE US Stock Best-Selling ETF" operated by Korea Investment Trust holds 14.59% of Coinbase. The guidance of the Financial Supervisory Service aims to control the risk exposure of traditional financial products to virtual assets.
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