In a recent statement , South Korea’s Financial Services Commission, the nation’s regulatory body for financial services, said that bitcoin ETFs recently listed in the United States could violate Korean law.

The regulator said that the domestic brokerage by Korean securities firms of an U.S. listed bitcoin spot ETF could potentially be in conflict with the country’s Virtual Asset User Protection Act as well as the Capital Markets Act, without providing any further details.

Lee Ju-yeol (), the Bank of Korea governor, stated in 2017 that cryptocurrencies were commodities and not legal tender. He also stressed the need for regulations.

In its notice, the FSC stated that a further review will be conducted. SEC Chair Gary Gensler is scheduled to meet with his Korean counterpart in Washington DC sometime this month.

Recently, authorities in South Korea announced that they plan to create regulations which would make the crypto holdings of officials public.

Vanguard in the U.S. has decided to not offer spot bitcoin ETFs on its platform. This includes BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust. The company cites a misalignment of the investment portfolio strategy.

Parikshit Miishra is the editor.