South Korean regulators have ordered to prevent ETFs from increasing their holdings in stocks of cryptocurrency companies like Coinbase

ChainCatcher news, according to the Korea Herald, the Financial Supervisory Service of South Korea recently issued verbal guidance to domestic asset management companies, urging them not to increase the proportion of stocks from crypto companies like Coinbase and Strategy in their ETFs. The regulatory agency reiterated that the "Emergency Measures Related to Virtual Currencies" issued in 2017 is still in effect, which explicitly prohibits formal financial institutions from holding, purchasing virtual assets, obtaining related collateral, and making equity investments.

Data shows that several products in the currently listed ETFs in South Korea have a holding of virtual asset-related targets exceeding 10%. Among them, the "ACE U.S. Stock Popular ETF" operated by Korea Investment Trust holds a 14.59% stake in Coinbase. The purpose of this guidance from the Financial Supervisory Service is to control the risk exposure of traditional financial products to virtual assets.