Quick Take

• South Korea’s Financial Supervisory Service instructed local institutions to refrain from increasing their stakes in crypto-related firms, according to a local report.
• The regulator reportedly said that financial institutions need to abide by the existing 2017 rule until new guidelines on crypto activities are implemented.

South Korea's Financial Supervisory Service (FSS) recently instructed local asset management firms to adjust their exchange-traded funds to limit exposure to crypto-related companies such as Coinbase and Strategy, a report from The Korea Herald said.

The Korea Herald reported Wednesday that the FSS gave such directions verbally to a number of companies earlier this month. The regulator reportedly said that asset managers need to comply with the Financial Services Commission's (FSC) administrative guidelines issued in 2017, which prohibit regulated financial institutions from holding, purchasing, or making equity investments in virtual assets.

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