According to a report by the Korean Herald, South Korea's financial regulatory body has issued an informal warning to domestic asset management companies, advising them to minimize their investment in cryptocurrency exchange-traded funds and US-listed digital asset companies. The Financial Supervisory Service instructed several firms to cap their investments in entities such as Coinbase and Strategy, in order to align with the country's 2017 policy. This development appears to signify a change in the government's approach, as there were prior indications that the regulatory framework for cryptocurrency trading might be eased. The current policy prohibits financial institutions from purchasing or holding equity in digital assets.
An official from the Financial Supervisory Service noted that despite changes in the regulatory landscape in both the US and South Korea, institutions must adhere to the existing guidelines.