South Korea Warns Asset Managers on Crypto ETF Exposure

South Korea’s Financial Supervisory Service (FSS) has issued fresh verbal guidance urging local asset managers to reduce their ETF exposure to crypto-related companies like Coinbase and MicroStrategy. This move reinforces the country’s long-standing 2017 policy that restricts financial firms from investing in or holding digital assets. Some Korean ETFs currently exceed 10% exposure to these firms, prompting regulatory concern. The FSS aims to minimize potential risks linked to volatile crypto markets while ensuring compliance with national financial stability standards.