🇰🇷 Bans Coinbase & Strategy: Crypto ETFs in Chaos! 🤑

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Ah, the exquisite irony of South Korea’s financial watchdog, that bastion of prudence, wagging its finger at fund managers for daring to sprinkle a dash of crypto pixie dust into their ETFs. 🧙‍♂️✨ The Financial Supervisory Service (FSS), ever the arbiter of taste, has decreed that too much Coinbase and Strategy (formerly MicroStrategy) is simply *too beaucoup* for their delicate sensibilities. 🍷

In a move as dramatic as a Wildean wit at a dinner party, the FSS has reminded everyone that their 2017 guidance on virtual currencies remains as relevant as a monocle at a tech conference. 📜 No buying, no holding, no collateral—heaven forbid! 🛑 Yet, the crypto world, ever the rebellious enfant terrible, continues to tantalize with its siren song of innovation and chaos. 🎭

Despite whispers of regulatory relaxation in the US and South Korea, the FSS stands firm, clutching its rulebook like a debutante holding a fan. “Nothing new has been put into law,” they declare, as if the world hasn’t changed since 2017. 🕰️ Oh, the folly of clinging to the past! 🍂

ETFs Under the Microscope: A Tragedy in Three Acts

The true comedy, however, lies in the rising number of ETFs that have embraced crypto-linked stocks with the fervor of a romantic poet. 💘 Some funds, like the ACE US Stock Bestseller ETF, have allocated a whopping 15% to Coinbase alone—a bold stroke that has the FSS clutching its pearls. 🌟 Another, the KoACT US Nasdaq Growth Company Active ETF, holds 13% in crypto stocks, a sin of excess that cannot be ignored. 😱

ETF Crypto Allocation

These passive ETFs, designed to mirror indices with the precision of a Swiss watch, now face the absurd task of removing specific stocks without unraveling their entire structure. 🧵 A “gap rate” spike? Tracking errors? Mon Dieu, the horror! 😱

Market Pushback: A Farce in Two Scenes

The industry, ever the dramatic protagonist, has responded with a chorus of groans. One official laments the impracticality of altering index-based ETFs without causing chaos, while another cries foul over the unfairness of it all. 🗣️ Why restrict Korean ETFs when South Korean investors can simply waltz into US-based ETFs holding the same stocks? 🕺 The money, like a mischievous sprite, will find its way around the restrictions. 💸

Market Pushback

“There’s already a lot of indirect investment happening through US ETFs,” one source quipped. “Putting restrictions only on Korean ETFs won’t really stop the trend.” 🧐 Oh, the absurdity of it all! 🎭

Old Rules, New Follies

South Korea, ever the cautious matron, has been wary of crypto since 2017, when officials slammed the door on corporate trading in response to a speculative frenzy. 🚪 Back then, the fear was money laundering and price manipulation—concerns as quaint as a gaslamp in the age of LEDs. 💡 Nearly seven years later, the crypto world has evolved, but the rules remain as static as a Wildean dandy’s expression. 😶

And so, the drama continues, a tragicomedy of regulation and innovation, where the only certainty is uncertainty. 🌪️ Will the FSS relent, or will the crypto ETFs dance to their own rebellious tune? Only time, that great raconteur, will tell. ⏳

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2025-07-24 09:25