Financial Supervisory Service (FSS), the financial auditor of South Korea, warned local asset management companies verbally to reduce their positions for digital asset companies such as Coinbase and Strategy, which are listed in the USA with crypto currency exchange investment funds. The Authority stressed that the policy in force since 2017 continues the same and shared the assessment of the existing rules despite the changing regulatory environment in the US and South Korea ”. According to Korea Herald, direct communication was established instead of written notification to companies. It is stated that the warning carries the message that the middle-long term investment decisions should be treated more cautiously.
Oral reminder of 2017 policy
The Oral Warning of the FSS shows that the framework that prevents regulated financial institutions from having a direct or indirect share in crypto currency assets is preserved. The boundaries set in 2017, recently increasing in the USA Bitcoin 
$118,974.48 Despite the interest of focused funds, it was not loosened. Authorities, the rule set has not changed, only reminded, he said.
According to Korea Herald, FSS has established one -on -one contact with the relevant institutions. Thus, without a written arrangement update, the existing rules were redefined. Message for companies Net: Regulations are still valid and investment strategies should be shaped according to these limits. Crypto investors’ application – the reason will surprise you!
Expected effects on investment decisions
Local asset managers may strengthen the risk of avoiding risk in crypto currency investments, including overseas markets. Warning may lead to the reconsideration of shares allocated to US -based companies such as Coinbase in corporate portfolios. Experts point out that such a reminder rapidly affects market preferences during periods of uncertainty.
FSS said that it takes into account the volatility and risks in crypto money markets, so a sudden policy change is not planned. Even when the US and South Korean regulation environment is transformed, the emphasis on “compliance with the existing rules” is considered as an indicator of the quest for stability.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
