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South Korea’s Financial Services Commission (FSC) has apparently issued a directive banning banking institutions from offering bitcoin futures contracts like a financial product. Based on a company Korea report, the Korean regulator doesn’t recognize bitcoin as ‘an underlying asset of derivatives products’ and it is hence restricted from being listed like a financial instrument for futures buying and selling.
South Korea’s primary financial regulator and watchdog has banned securities firms from launching bitcoin futures contracts, based on a nearby report.
The sweeping ban by Korean regulators is similar to the late September ban on ICOs, following China’s lead in enforcing an entire curb on fundraiser through cryptocurrencies.
On Sunday, Chicago-based Cboe will launch bitcoin futures contracts – becoming the very first controlled U.S. exchange to do this. The exchange stole a march on city-rival CME, that will list its very own bitcoin futures product on December 18. New York’s Nasdaq, the world’s second-largest stock exchange, can also be intending to list bitcoin futures contracts before mid-2018.
“It is the very first time for that South Korean government bodies to ban buying and selling any particular item,Inches the report quotes an agent of Korea’s securities industry as stating. “It appears they made such [a] decision fretting about it whether it will get unmanageable because they haven’t taken a situation on cryptocurrency.”
The preemptive ban comes in front of multiple Korean securities firms getting ready to introduce bitcoin futures contracts to clients. The Shinhan Financial Commitment Co. and eBest Investment & Securities Co have both apparently cancelled bitcoin futures workshops for interested investors later in a few days.
Featured image from Shutterstock.
Meanwhile, the decidedly embracive approach taken by Korea’s neighbor in Japan – laws and regulations arrived to effect in April to acknowledge bitcoin like a legal approach to payment – now sees a significant financial house getting ready to launch its very own bitcoin derivatives product. The Tokyo, japan Financial Exchange, which counts the kind of JPMorgan Chase among its buying and selling participants, is pressing ahead to list out its bitcoin futures contracts by mid-2018.