South Korea’s finance regulator has informally warned local asset managers to reduce their exposure to crypto exchange-traded funds (ETF) and U.S.-listed digital asset firms, according to a report by RialCenter.
The Financial Supervisory Service (FSS) verbally instructed several firms to limit their exposure to Coinbase (COIN) and Michael Saylor’s Strategy (MSTR), in line with its 2017 policy stance.
The report suggests a potential shift in policy, as it was previously indicated that the regulator was considering easing some of the trading requirements for crypto. The FSS’s policy prohibits regulated financial institutions from holding or buying equity investments in digital assets.
An FSS official stated that despite the regulatory changes in the U.S. and South Korea, institutions must adhere to the current guidelines, the report added.
The FSS was not immediately available for comment.
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