In the quaint corridors of South Korea’s Financial Supervisory Service (FSS), a curious directive has floated forth, urging the local asset managers to tread cautiously when dancing with crypto firms. One might wonder, is this reminiscent of a cautious feline eyeing an untrustworthy mouse?
As the Korea Herald amusingly chronicles, the FSS, with an air of gravity befitting a philosopher on a hilltop, whispered to these managers—“Limit thy exposure!” Such fervent counsel added a sprinkle of sarcasm while pointing fingers at admirable but dubious entities like Coinbase and Strategy stocks. 💁♂️
This supplication, quaintly informal and advisory in nature, perhaps lacks the bite needed to instigate actual change. The reality is that passive exchange-traded funds (ETFs) meandering in Korea can’t simply cast off troublesome stocks without a bureaucratic waltz with index providers. It’s almost funny, really, as they navigate through these financial waters with the precision of a tightrope walker. 🎪
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The FSS, in a moment of self-awareness, acknowledged the limitations of its guidance, framing its remarks as mere encouragement for prudence in the labyrinth of ETF design, while some industry insiders raised an eyebrow at the fairness of such expectations. One such source parried:
“Dare we limit our own ETFs merely to quench the thirst for regulatory control? Investors can slip into crypto exposure through U.S. products like greased fish! Honestly, does this regulation even begin to work?”
The Allure of Crypto Stocks for Korean Asset Managers
In an amusing twist, these comments arrive on the heels of a noticeable rise in South Korean ETF allocations to crypto-related stocks, resembling a flock of gullible sheep following the latest trend. The Korea Investment Management’s Ace US Stock Bestseller ETF allowed itself a hearty 14.6% heart-to-heart with Coinbase, while the KoACT Nasdaq Growth Active ETF flirted with Coinbase (7.4%) and Strategy (6%), wrapping up a cozy 13.4% consolidation. ❤️
Similarly, the KoACT Global AI & Robotics Active ETF dipped its toes with a 10.3% dalliance with Coinbase, and the Timefolio Nasdaq 100 Active ETF indulged in an 11% temptation into crypto-related stocks.
The FSS clumsily reminded local financial institutions that they are not to hold, acquire, or use cryptocurrencies as collateral—a mantra both charming and stifling. “Though both U.S. and Korean regulators are loosening their ties to crypto, here we remain, shackled by old rules,” an official lamented, adding:
“Until the gods bestow new regulations upon us, these existing rules are our fate.”
These declarations echo the whispers of a waning regulatory climate, as South Korea’s Ministry of SMEs and Startups recently proposed to lift the shackles restricting crypto firms from savoring tax breaks. A delicious prospect, indeed!
Not to be outdone, shares in major South Korean banks have seen a jubilant rise following trademark filings for stablecoins, perhaps a sign of their newfound affection for digital assets—a romantic story set amidst the backdrop of traditional finance!
As the winds of change swirl, Bank of Korea Deputy Governor Ryoo Sangdai expressed aspirations for banks to become the primary crafters of stablecoins, as if ready to embrace the future with open arms. Recent reports hinted at a potential union of eight central South Korean banks, plotting to launch a stablecoin pegged to the won by the year 2026—how very accommodating of them! ⚖️
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2025-07-23 12:53