South Korea’s FSS advises fund managers to limit ETF exposure to crypto firms like Coinbase, citing caution as regulatory rules are still evolving.
South Korea’s Financial Supervisory Service (FSS) advised local asset managers to avoid excessive exposure to crypto firms.
According to a Wednesday report by The Korea Herald, the FSS verbally instructed local asset managers to limit exposure to crypto firms. The report cited Coinbase and Strategy stock as examples.
The guidance was reportedly informal and advisory. The impact was also limited because passive exchange-traded funds (ETFs) operating in South Korea cannot easily remove specific stocks without changes approved by index providers.
