South Korean regulatory agency orders to prevent ETFs from expanding their holdings in cryptocurrency companies such as Coinbase

According to the Korean Herald, the Financial Supervisory Authority of South Korea recently issued verbal guidance to domestic asset management companies, requiring them not to expand their holdings of cryptocurrency stocks such as Coinbase and Strategy in ETFs. The regulatory authorities reiterated that the "Emergency Measures Related to Virtual Currency" issued in 2017 are still effective. This administrative guidance explicitly prohibits formal financial institutions from holding or purchasing virtual assets, obtaining related collateral, and conducting equity investments. According to data, the holdings of virtual asset related targets in multiple listed ETFs in South Korea currently exceed 10%. Among them, the "ACE US Stock Bestseller ETF" operated by Korea Investment Trust holds 14.59% of Coinbase. The guidance from the Financial Supervisory Commission aims to control the risk exposure of traditional financial products to virtual assets.