**South Korea to Maintain Ban on Crypto ETFs Despite US Approval, Official Confirms**

The Financial Services Commission (FSC) of South Korea has reaffirmed its stance on cryptocurrency ETFs, stating that it will not follow the United States in allowing such investment products. The decision comes in the wake of the US Securities and Exchange Commission’s (SEC) recent approval of spot Bitcoin ETFs.

According to an official from South Korea’s Financial Services Commission (FSC), despite the SEC’s approval of spot Bitcoin ETFs, financial institutions in South Korea are still prohibited from investing in cryptocurrencies. The official highlighted that the ban on financial institutions with regard to cryptocurrencies remains unchanged, emphasizing that the regulatory approach in South Korea towards these products remains stringent.

The FSC official emphasized that there are no policy changes regarding virtual currencies in South Korea, despite the recent developments in the US. It was noted that while spot ETFs have been permitted in other jurisdictions such as Hong Kong, Germany, and Canada, South Korea is not inclined to follow suit. The official reinforced that the current laws do not allow financial institutions in South Korea to launch ETFs or engage in the trading of crypto assets, in line with the government’s commitment to stabilize the financial market and protect investors.

Since December 2017, financial institutions in South Korea have been prohibited from holding and investing in cryptocurrencies.

The remarks from the FSC official come at a time when the crypto market is turning its attention to the prospects of Ethereum spot ETFs. Several issuers have applied to list a spot ETF based on Ethereum, the world’s second-largest cryptocurrency by market cap. Furthermore, discussions have arisen around the potential approval of XRP ETFs following a US court ruling that deemed XRP not a security in July 2023.

The crypto market has responded to these developments, with Ethereum prices spiking above $2,600 and altcoins experiencing an uptick, while XRP has surpassed $0.60. Additionally, Ethereum Classic has recorded substantial gains, with its price surging by over 35% to trade near $30.

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**FAQ**

*What is an ETF?*
An Exchange Traded Fund (ETF) is a type of security that tracks the performance of a particular index, sector, commodity, or other asset. ETFs can be traded on an exchange, similar to stocks.

*Why is South Korea maintaining the ban on crypto ETFs?*
The South Korean government aims to stabilize the financial market and protect investors by upholding the ban on financial institutions participating in the buying, selling, or trading of cryptocurrencies.

*What impact does the SEC’s approval of spot Bitcoin ETFs have on the crypto market?*
The SEC’s decision to approve spot Bitcoin ETFs has generated speculation in the market, leading to a surge in prices, particularly for Ethereum and XRP, and has sparked discussions about the potential approval of ETFs for these cryptocurrencies.

*Can financial institutions in South Korea invest in cryptocurrencies through other means?*
As of now, the ban encompasses all forms of investment, trading, and holding of cryptocurrencies by financial institutions in South Korea, including participation in ETFs.