ETF alert! South Korea organizer tapes, strategy assets in one comprehensive step star-news.press/wp

The South Korea Financial Supervision Authority urges the funds of the funds to expand the shares related to the encryption they packed in the boxes circulated on the Stock Exchange (ETFS).

Financial Supervision Service (FSS) According to what was reported, oral instructions were issued that the companies do not go abroad with investments in companies such as Coinbase and Strategy (formerly Microstrategy).

FSS indicated that 2017 guidelines on virtual currencies are still active and still should be followed. This oldest guidance prevents financial institutions from buying, preserving digital assets as a guarantee.

Despite the increasing interest in encryption and the signs of the lighter organization in both the United States and South Korea, officials say nothing new has yet been developed. To date, the old rules still apply.

ETF exposure to encryption shares directs audit

One big reason for warning It seems that the increasing number of traded investment funds that now contain large amounts of shares associated with encryption.

According to reports, many of these integrity boxes include these digital asset companies as a major part of their wallet – sometimes more than 10 % of the total.

Image: Markets.com

For example, at ACE US Stock Basseller ETF, run by Korea Investment Trust Management, allocate 15 % in Coinbase alone.

Another box, Koact Us Nasdaq Growth Company Active ETF, has 7 % of Coinbase and 6 % of the strategy, with a total of 13 % in shares related to encryption.

This money is mostly negative investment boxes, which are designed to reflect a group index. This makes it difficult to remove specific shares manually without causing problems for investors who expect the fund to commit to its structure.

Market review and practical challenges

Some in the industry are not happy with timing or FSS application guidance. An official with ETF space knowledge said that removing the specified shares from the traded investment funds based on the index without changing the entire index can cause what is known as the “gap rate” for the height, which leads to tracking errors.

Another concern is fairness. Critics say it does not make sense to reduce local investment funds only when South Korean investors can easily reach the United States’s investment funds that carry the same encryption shares. In this case, money flows around restrictions instead.

One of the sources said: “There is already a lot of indirect investment that occurs through the investment funds circulating in the United States.” “Placing restrictions on Korean investment funds will not only stop this trend.”

Old rules, new problems

South Korea has been cautious about the participation of companies in Crypto since 2017, when officials moved to close trading at the company level in response to the rise in speculation activity.

At that time, fear was mainly about money laundering and price processing. But nearly seven years after the encryption world has changed significantly – even if the rules are not.

Distinctive image from Unsplash, tradingvief chart

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