South Korea’s Financial Regulator has informally warned local asset managers to reduce their exposure to crypto-exchange-traded funds (ETF) and US-Børnoter Digital Aktivvelsen, according to a Korean Herald report.
The Economic Supervisory Service (FSS) verbally told more companies to limit their exposure to Coinbase (Coin) and Michael Saylor’s strategy (MSTR) to comply with its policy for 2017.
The report seems to suggest a change in policy from the country when it was previously reported that the regulator was looking at facilitating some of the business needs of crypto. FSS ‘policy prohibits regulated financial institutions from holding or buying capital investments in digital assets.
An FSS official said that despite the change in the regulatory environment in the US and South Korea, institutions have to comply with the current set of guidelines, the report added.
FSS was not immediately available for comment.
