South Korean regulators call for limits on ETF holdings of certain exchange and crypto company stocks

Odaily Planet Daily reported that South Korea's Financial Supervisory Service recently issued verbal guidance to domestic asset management companies, instructing them not to increase the proportion of holdings in ETFs of stocks related to certain exchanges, strategies, and other crypto enterprises.
The regulatory authority emphasized that the "Emergency Measures on Virtual Currencies" issued in 2017 remain in effect. This document prohibits formal financial institutions from directly holding virtual assets, acquiring related collateral, or making equity investments. Data shows that several ETFs in South Korea have already increased their allocation to virtual asset-related targets to over 10%. Among them, the "ACE U.S. Stock Bestseller ETF" has a 14.59% holding in a certain exchange. This regulatory guidance aims to limit the risk exposure of traditional financial products to virtual assets. (The Korea Herald)